Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2021 | Jan. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 ($0.01 par value) | |
Trading Symbol | JKHY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 72,825,033 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 29,120 | $ 50,992 |
Receivables, net | 236,096 | 306,564 |
Income tax receivable | 22,881 | 30,243 |
Prepaid expenses and other | 116,778 | 109,723 |
Deferred costs | 62,157 | 46,215 |
Total current assets | 467,032 | 543,737 |
PROPERTY AND EQUIPMENT, net | 241,409 | 252,481 |
OTHER ASSETS: | ||
Non-current deferred costs | 133,223 | 127,205 |
Computer software, net of amortization | 387,128 | 368,094 |
Other non-current assets | 260,186 | 249,210 |
Other intangible assets, net of amortization | 28,787 | 26,129 |
Goodwill | 687,458 | 687,458 |
Total other assets | 1,572,361 | 1,539,938 |
Total assets | 2,280,802 | 2,336,156 |
CURRENT LIABILITIES: | ||
Accounts payable | 14,155 | 18,485 |
Accrued expenses | 150,363 | 182,517 |
Notes payable and current maturities of long-term debt | 103 | 110 |
Deferred revenues | 208,733 | 319,748 |
Total current liabilities | 373,354 | 520,860 |
LONG TERM LIABILITIES: | ||
Non-current deferred revenues | 67,045 | 75,852 |
Deferred income tax liability | 272,331 | 260,758 |
Debt, net of current maturities | 240,026 | 100,083 |
Other long-term liabilities | 56,050 | 59,311 |
Total long term liabilities | 635,452 | 496,004 |
Total liabilities | 1,008,806 | 1,016,864 |
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; 103,860,246 shares issued at December 31, 2021; 103,795,169 shares issued at June 30, 2021 | 1,039 | 1,038 |
Additional paid-in capital | 535,493 | 518,960 |
Retained earnings | 2,542,583 | 2,412,496 |
Less treasury stock at cost; 31,042,903 shares at December 31, 2021; 29,792,903 shares at June 30, 2021 | (1,807,119) | (1,613,202) |
Total stockholders' equity | 1,271,996 | 1,319,292 |
Total liabilities and equity | 2,280,802 | 2,336,156 |
Customer Relationships [Member] | ||
OTHER ASSETS: | ||
Customer relationships, net of amortization | $ 75,579 | $ 81,842 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 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 | 103,860,246 | 103,795,169 |
Treasury Stock, Shares | 31,042,903 | 29,792,903 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||||
REVENUE | $ 493,896 | $ 422,361 | $ 981,952 | $ 874,161 |
EXPENSES | ||||
Cost of Revenue | 282,825 | 257,782 | 559,460 | 520,711 |
Research and Development | 29,916 | 26,780 | 56,670 | 52,837 |
Selling, General and Administrative | 55,493 | 44,167 | 106,565 | 89,393 |
Total Expenses | 368,234 | 328,729 | 722,695 | 662,941 |
OPERATING INCOME | 125,662 | 93,632 | 259,257 | 211,220 |
INTEREST INCOME (EXPENSE) | ||||
Interest income | 6 | 52 | 13 | 120 |
Interest expense | (447) | (117) | (696) | (235) |
Total Interest Income (Expense) | (441) | (65) | (683) | (115) |
INCOME BEFORE INCOME TAXES | 125,221 | 93,567 | 258,574 | 211,105 |
PROVISION FOR INCOME TAXES | 29,551 | 21,585 | 60,791 | 47,907 |
NET INCOME | $ 95,670 | $ 71,982 | $ 197,783 | $ 163,198 |
Earnings Per Share | ||||
Basic earnings per share | $ 1.30 | $ 0.94 | $ 2.68 | $ 2.14 |
Basic weighted average shares outstanding | 73,580 | 76,202 | 73,798 | 76,354 |
Diluted earnings per share | $ 1.30 | $ 0.94 | $ 2.68 | $ 2.13 |
Diluted weighted average shares outstanding | 73,697 | 76,280 | 73,920 | 76,496 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | PREFERRED SHARES | COMMON SHARES | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | TREASURY STOCK |
Balance, beginning of period at Jun. 30, 2020 | $ 1,036 | $ 495,005 | $ 2,235,320 | $ (1,181,673) | ||
Balance, beginning of period (Accounting Standards Update 2016-13) at Jun. 30, 2020 | (493) | |||||
Shares, beginning of period at Jun. 30, 2020 | 103,622,563 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements | 78,414 | |||||
Shares issued for Employee Stock Purchase Plan | 35,726 | |||||
Shares issued for equity-based payment arrangements | $ (1) | (1) | ||||
Tax withholding related to share-based compensation | (6,689) | |||||
Shares issued for Employee Stock Purchase Plan | 0 | 5,138 | ||||
Stock-based compensation expense | 9,752 | |||||
Net Income | $ 163,198 | 163,198 | ||||
Dividends | (65,516) | |||||
Purchase of treasury shares | (109,899) | |||||
Balance, end of period at Dec. 31, 2020 | $ 1,545,179 | $ 1,037 | 503,205 | 2,332,509 | (1,291,572) | |
Shares, end of period at Dec. 31, 2020 | 103,736,703 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.86 | |||||
Balance, beginning of period at Sep. 30, 2020 | $ 1,037 | 497,030 | 2,293,229 | (1,247,546) | ||
Balance, beginning of period (Accounting Standards Update 2016-13) at Sep. 30, 2020 | 0 | |||||
Shares, beginning of period at Sep. 30, 2020 | 103,696,962 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements | 23,412 | |||||
Shares issued for Employee Stock Purchase Plan | 16,329 | |||||
Shares issued for equity-based payment arrangements | $ 0 | 0 | ||||
Tax withholding related to share-based compensation | (1,184) | |||||
Shares issued for Employee Stock Purchase Plan | 0 | 2,232 | ||||
Stock-based compensation expense | 5,127 | |||||
Net Income | $ 71,982 | 71,982 | ||||
Dividends | (32,702) | |||||
Purchase of treasury shares | (44,026) | |||||
Balance, end of period at Dec. 31, 2020 | $ 1,545,179 | $ 1,037 | 503,205 | 2,332,509 | (1,291,572) | |
Shares, end of period at Dec. 31, 2020 | 103,736,703 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.43 | |||||
Preferred Shares | 0 | |||||
Balance, beginning of period at Jun. 30, 2021 | $ 1,319,292 | $ 1,038 | 518,960 | 2,412,496 | (1,613,202) | |
Balance, beginning of period (Accounting Standards Update 2016-13) at Jun. 30, 2021 | 0 | |||||
Shares, beginning of period at Jun. 30, 2021 | 103,795,169 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements | 26,533 | |||||
Shares issued for Employee Stock Purchase Plan | 38,544 | |||||
Shares issued for equity-based payment arrangements | $ 0 | 0 | ||||
Tax withholding related to share-based compensation | (1,998) | |||||
Shares issued for Employee Stock Purchase Plan | 1 | 6,476 | ||||
Stock-based compensation expense | 12,055 | |||||
Net Income | 197,783 | 197,783 | ||||
Dividends | (67,696) | |||||
Purchase of treasury shares | (193,917) | |||||
Balance, end of period at Dec. 31, 2021 | $ 1,271,996 | $ 1,039 | 535,493 | 2,542,583 | (1,807,119) | |
Shares, end of period at Dec. 31, 2021 | 103,860,246 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.92 | |||||
Balance, beginning of period at Sep. 30, 2021 | $ 1,038 | 527,255 | 2,480,574 | (1,613,202) | ||
Balance, beginning of period (Accounting Standards Update 2016-13) at Sep. 30, 2021 | 0 | |||||
Shares, beginning of period at Sep. 30, 2021 | 103,822,265 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements | 21,101 | |||||
Shares issued for Employee Stock Purchase Plan | 16,880 | |||||
Shares issued for equity-based payment arrangements | $ 0 | 0 | ||||
Tax withholding related to share-based compensation | (1,046) | |||||
Shares issued for Employee Stock Purchase Plan | 1 | 2,739 | ||||
Stock-based compensation expense | 6,545 | |||||
Net Income | $ 95,670 | 95,670 | ||||
Dividends | (33,661) | |||||
Purchase of treasury shares | (193,917) | |||||
Balance, end of period at Dec. 31, 2021 | $ 1,271,996 | $ 1,039 | $ 535,493 | $ 2,542,583 | $ (1,807,119) | |
Shares, end of period at Dec. 31, 2021 | 103,860,246 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.46 | |||||
Preferred Shares | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 197,783 | $ 163,198 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 25,843 | 26,652 |
Amortization | 62,610 | 61,164 |
Change in deferred income taxes | 11,573 | 8,651 |
Expense for stock-based compensation | 13,027 | 9,752 |
(Gain) Loss on disposal of assets | 240 | (2,019) |
Changes in operating assets and liabilities: | ||
Change in receivables | 70,468 | 87,518 |
Change in prepaid expenses, deferred costs and other | (39,991) | (26,109) |
Change in accounts payable | 2,995 | 16 |
Change in accrued expenses | (35,814) | (22,627) |
Change in income taxes | 8,439 | 13,922 |
Change in deferred revenues | (119,822) | (126,134) |
Net cash from operating activities | 197,351 | 193,984 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (22,373) | (9,543) |
Proceeds from dispositions | 38 | 6,157 |
Purchased software | (7,364) | (4,254) |
Computer software developed | (71,353) | (62,804) |
Purchase of investments | 0 | (12,100) |
Net cash from investing activities | (101,052) | (82,544) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on credit facilities | 220,000 | 0 |
Repayments on credit facilities and financing leases | (80,065) | (57) |
Purchase of treasury stock | (193,917) | (109,899) |
Dividends paid | (67,696) | (65,516) |
Tax withholding payments related to share based compensation | (1,998) | (6,689) |
Proceeds from sale of common stock | 5,505 | 5,138 |
Net cash from financing activities | (118,171) | (177,023) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (21,872) | (65,583) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 50,992 | 213,345 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 29,120 | $ 147,762 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
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 ("Jack Henry," "JKHY," or the "Company") is a leading provider of technology solutions and payment processing services primarily for the financial services industry. The Company 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, by providing the conversion and implementation services for financial institutions to utilize JKHY systems, and by providing payment processing and other related services. JKHY also provides continuing support and services to customers using on-premise or JKHY private and public cloud-based systems. Consolidation The condensed consolidated financial statements include the accounts of JKHY and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. Comprehensive Income Comprehensive income for the three and six months ended December 31, 2021, and 2020, equals the Company’s net income. Change in Accounting Policy The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses, ("CECL") with an adoption date of July 1, 2020. As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to CECL is disclosed below. The adoption of CECL resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of July 1, 2020. Allowance for Credit Losses The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended December 31, 2021, and 2020: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Allowance for credit losses - beginning balance $ 7,660 $ 6,731 $ 7,267 $ 6,719 Cumulative effect of accounting standards update adoption — — — 493 Current provision for expected credit losses 300 370 840 910 Write-offs charged against allowance (227) (263) (373) (1,286) Recoveries of amounts previously written off — (1) (1) (4) Other — (7) — (2) Allowance for credit losses - ending balance $ 7,733 $ 6,830 $ 7,733 $ 6,830 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 December 31, 2021, totaled $453,439 and at June 30, 2021, totaled $435,169. 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 $983,626 and $921,050 at December 31, 2021, and June 30, 2021, respectively. Purchase of Investments At December 31, 2021, and June 30, 2021, the Company had an investment in the preferred stock of Automated Bookkeeping, Inc. ("Autobooks") of $13,250, which represented a non-controlling share of the voting equity as of each date. The total investment was recorded at cost and is included within other non-current assets on the Company's balance sheet. 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. 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 December 31, 2021, there were 31,043 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,948 additional shares. The total cost of treasury shares at December 31, 2021, was $1,807,119. During the first six months of fiscal 2022, the Company repurchased 1,250 shares. At June 30, 2021, there were 29,793 shares in treasury stock and the Company had authority to repurchase up to 5,198 additional shares. The total cost of treasury shares at June 30, 2021, was $1,613,202. During the first six months of fiscal 2021, the Company repurchased 675 shares. Income Taxes Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement basis 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 unrecognized 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, 2021. 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, 2021, 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 December 31, 2021, the results of its operations for the three and six months ended December 31, 2021, and 2020, changes in stockholders' equity for the three and six months ended December 31, 2021, and 2020, and its cash flows for the six months ended December 31, 2021, and 2020. The condensed consolidated balance sheet at June 30, 2021, 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 and six months ended December 31, 2021, are not necessarily indicative of the results to be expected for the entire fiscal year. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Risks and Uncertainties The extent to which the COVID-19 pandemic will directly or indirectly impact our business and financial results, including revenue, expenses, cost of revenues, research and development, and selling, general and administrative expenses, will depend on future developments that are highly uncertain, such as new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19 (including the efficacy of vaccines against new variants and the development and effectiveness of treatments), as well as the economic impact on local, regional, national and international customers and markets. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021, and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for credit losses, as well as the carrying value of goodwill and other long-lived assets. While there was not a material impact to the Company’s condensed consolidated financial statements as of and for the fiscal quarter ended December 31, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted Accounting Guidance [Text Block] | Recently Adopted Accounting Guidance In December of 2019, the FASB issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions and simplifies other requirements of Topic 740 guidance. The ASU was effective for the Company on July 1, 2021. The Company adopted ASU 2019-12 effective July 1, 2021 with no material impact on its condensed consolidated financial statements. Not Yet Adopted |
Revenue and Deferred Costs Reve
Revenue and Deferred Costs Revenue and Deferred Costs (Notes) | 6 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Deferred Costs [Text Block] | REVENUE AND DEFERRED COSTS Revenue Recognition The Company generates revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales. Disaggregation of Revenue The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 10, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue. Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Private and Public Cloud 1 $ 138,340 $ 124,498 $ 273,982 $ 245,456 Product Delivery and Services 79,499 48,414 131,014 105,312 On-Premise Support 2 78,372 77,961 188,708 181,102 Services and Support 296,211 250,873 593,704 531,870 Processing 197,685 171,488 388,248 342,291 Total Revenue $ 493,896 $ 422,361 $ 981,952 $ 874,161 1 The name of this revenue stream was changed in fiscal 2021 from "outsourcing and cloud" to "private and public cloud" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current fiscal quarter as it was in the comparative quarter of fiscal 2021 and prior. 2 The name of this revenue stream was changed in fiscal 2021 from "in-house support" to "on-premise support" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current fiscal quarter as it was in the comparative quarter of fiscal 2021 and prior. Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. December 31, June 30, Receivables, net $ 236,096 $ 306,564 Contract Assets - Current 20,374 22,884 Contract Assets - Non-current 59,119 52,920 Contract Liabilities (Deferred Revenue) - Current 208,733 319,748 Contract Liabilities (Deferred Revenue) - Non-current 67,045 75,852 Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, except 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 adjusts 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 December 31, 2021 and 2020, the Company recognized revenue of $89,257 and $79,421, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. For the six months ended December 31, 2021 and 2020, the Company recognized revenue of $157,781 and $156,666, 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 December 31, 2021, 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 $5,154,912. The Company expects to recognize approximately 26% over the next 12 months, 20% 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 $347,867 and $314,807 at December 31, 2021 and June 30, 2021, respectively. For the three months ended December 31, 2021 and 2020, amortization of deferred contract costs was $32,154 and $28,794, respectively. During the six months ended December 31, 2021, and 2020, amortization of deferred contract costs totaled $67,998 and $62,620, respectively. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments[Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS For cash equivalents, certificates of deposit, 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 current assets is as follows: Estimated Fair Value Measurements Total Fair Level 1 Level 2 Level 3 Value December 31, 2021 Financial Assets: Certificates of Deposit $ — $ 1,209 $ — $ 1,209 Financial Liabilities: Revolving credit facility $ — $ 240,000 $ — $ 240,000 June 30, 2021 Financial Assets: Certificates of Deposit $ — $ 1,200 $ — $ 1,200 Financial Liabilities: Revolving credit facility $ — $ 100,000 $ — $ 100,000 |
Leases Leases (Notes)
Leases Leases (Notes) | 6 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASESThe 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. 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. 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 the commencement date based on the present value of lease payments over the lease term. 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. The determination of the incremental borrowing rate requires judgment and is determined by 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 leases certain office space, data centers and equipment with remaining terms of 1 to 12 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. Variable lease costs are recognized as a variable lease expense when incurred. At December 31, 2021, and June 30, 2021, the Company had operating lease assets of $51,888 and $55,977 and financing lease assets of $124 and $188, respectively. At December 31, 2021, total operating lease liabilities of $56,653 were comprised of current operating lease liabilities of $11,623 and noncurrent operating lease liabilities of $45,030, and total financing lease liabilities of $129 were comprised of current financing lease liabilities of $103 and noncurrent financing lease liabilities of $26. At June 30, 2021, total operating lease liabilities of $60,828 were comprised of current operating lease liabilities of $11,460 and noncurrent operating lease liabilities of $49,368, and total financing lease liabilities of $193 were comprised of current financing lease liabilities of $110 and noncurrent financing lease liabilities of $83. Operating lease assets are included within other non-current assets and operating lease liabilities are included within 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 $27,625 and $23,813 as of December 31, 2021, and June 30, 2021, respectively. Financing lease assets are included within property and equipment, net and financing lease liabilities are included within notes payable (current portion) and long-term debt (noncurrent portion) in the Company’s condensed consolidated balance sheet. Financing lease assets were recorded net of accumulated amortization of $206 and $153 as of December 31, 2021, and June 30, 2021, respectively. Operating lease costs for the three months ended December 31, 2021, and 2020, were $3,327 and $3,766, respectively. Financing lease costs for the three months ended December 31, 2021, and 2020, were $27 and $30, respectively. Total operating and financing lease costs for the respective quarters included variable lease costs of approximately $441 and $809, respectively. Operating lease costs for the six months ended December 31, 2021, and 2020, were $6,759 and $7,675, respectively. Financing lease costs for the six months ended December 31, 2021, and 2020, were $55 and $30, respectively. Total operating and financing lease costs for the respective fiscal year-to-date periods included variable lease costs of approximately $840 and $2,189. Operating and financing lease expense are included within cost of services, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of income. For the six months ended December 31, 2021, and 2020, the Company had operating cash flows for payments on operating leases of $6,802 and $6,872, respectively, and ROU assets obtained in exchange for operating lease liabilities of $1,870 and $4,485, respectively. Financing cash flows for payments on financing leases for the six months ended December 31, 2021, and 2020, were $55 and $63, respectively. As of December 31, 2021, and June 30, 2021, the weighted average remaining lease term for the Company's operating leases was 77 months and 81 months, respectively, and the weighted average discount rate was 2.62% and 2.67%, respectively. As of December 31, 2021, and June 30, 2021, the weighted average remaining lease term for the Company's financing leases was 15 months and 21 months, respectively. The weighted average discount rate for the Company's financing leases was 2.36% and 2.39% as of December 31, 2021, and June 30, 2021, respectively. Maturity of Lease Liabilities under ASC 842 Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021*: Due Dates (fiscal year) Future Minimum Rental Payments 2022 (remaining period) 6,617 2023 12,089 2024 10,029 2025 7,266 2026 6,342 Thereafter 19,388 Total lease payments $ 61,731 Less: interest (5,078) Present value of lease liabilities $ 56,653 * Financing leases were immaterial to the fiscal quarter, so a maturity of lease liabilities table has only been included for operating leases. Lease payments included $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At December 31, 2021, the Company had $60 in legally binding lease payments for one lease that was signed but not yet commenced. The lease commencement date is March 1, 2022, and the lease term is 36 months. |
Debt (Text Block)
Debt (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | DEBT Revolving credit facility On February 10, 2020, the Company entered into a five-year senior, unsecured revolving credit facility. The credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $700,000. The credit facility bears interest at a variable rate equal to (a) a rate based on a eurocurrency rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the U.S. Bank prime rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iv) 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 and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit facility agreement. As of December 31, 2021, the Company was in compliance with all such covenants. The revolving credit facility terminates February 10, 2025. There was $240,000 outstanding under the credit facility at December 31, 2021, and $100,000 outstanding balance at June 30, 2021. Other lines of credit The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires on April 30, 2023. There was no balance outstanding at December 31, 2021, or June 30, 2021. Interest The Company paid interest of $604 and $105 during the six months ended December 31, 2021, and 2020, respectively. |
Income Taxes (Text Block)
Income Taxes (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXESProvision for income taxes increased for the three months ended December 31, 2021, compared to the three months ended December 31, 2020, with an effective tax rate of 23.6% of income before income taxes, compared to 23.1% in the prior-year fiscal quarter. The increase in the effective tax rate comparing the three-month periods ended December 31 was primarily due to the impact of increases in operating income relative to the impact of other items affecting the effective tax rate in the current period. For the six months ended December 31, 2021, provision for income taxes increased compared to the six months ended December 31, 2020, with an effective tax rate of 23.5% of income before income taxes, compared to 22.7% for the same period last fiscal year. The increase in the effective tax rate comparing the fiscal year-to-date periods ended December 31 was primarily due to the relative impact of the increase in operating income in the current fiscal year-to-date period and a larger excess tax benefit received from share-based compensation in the prior fiscal year-to-date period. The Company paid income taxes, net of refunds, of $40,687 and $24,794 in the six months ended December 31, 2021, and 2020, respectively. At December 31, 2021, the Company had $9,594 of gross unrecognized tax benefits before interest and penalties, $8,891 of which, if recognized, would affect our effective tax rate. The Company had accrued interest and penalties of $1,425 and $1,896 related to uncertain tax positions at December 31, 2021, and 2020, respectively. The U.S. federal and state income tax returns for fiscal 2018 and all subsequent years remain subject to examination as of December 31, 2021, under statute of limitations rules. The Company believes it is reasonably possible that the liability for unrecognized tax benefits could reduce by $3,500 to $4,500 within twelve months of December 31, 2021, due to lapsing statutes of limitations and examination closures. |
Stock Based Compensation (Text
Stock Based Compensation (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION Our operating income for the three months ended December 31, 2021, and 2020, included $6,956 and $5,127 of stock-based compensation costs, respectively. Our operating income for the six months ended December 31, 2021, and 2020, included $13,027 and $9,752 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. A summary of option plan activity under this plan is as follows: Number of Shares Weighted Average Exercise Price Aggregate Outstanding July 1, 2021 22 $ 87.27 Granted — — Forfeited — — Exercised — — Outstanding December 31, 2021 22 $ 87.27 $ 1,729 Vested and Expected to Vest December 31, 2021 22 $ 87.27 $ 1,729 Exercisable December 31, 2021 22 $ 87.27 $ 1,729 At December 31, 2021, 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 December 31, 2021, was 4.50 years. The Company issues unit awards under the 2015 EIP. The following table summarizes non-vested performance and restricted stock unit awards as of December 31, 2021: Units Weighted Aggregate Intrinsic Value Outstanding July 1, 2021 294 $ 160.22 Granted 130 178.47 Vested (40) 148.56 Forfeited (41) 198.03 Outstanding December 31, 2021 343 $ 163.99 $ 57,242 The 130 unit awards granted in fiscal 2022 had service requirements and performance targets, with 82 having only service requirements. The unit awards with only service requirements were valued at the weighted average fair value of the non-vested units 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. The remaining 48 unit awards granted in fiscal 2022 have performance targets along with service requirements. 19 of these performance and service requirement unit awards were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. The payout at release of approximately half of these unit awards will be determined based on the Company's compound annual growth rate (CAGR) for revenue (excluding adjustments) for the three-year vesting period compared against goal thresholds as defined in the award agreement. The performance payout at release of the other half of these unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement. The other 29 performance and service requirement unit awards were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design. Per the Company's award vesting and settlement provisions, the awards that utilized a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return (TSR) in comparison to the custom peer group comprised of participants approved by the Compensation Committee of the Company's Board of Directors for fiscal year 2022. The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows. Fiscal year 2022 Monte Carlo award inputs: Volatility 28.55 % Risk free interest rate 0.32 % Annual dividend based on most recent quarterly dividend $ 1.84 Beginning TSR 65 % At December 31, 2021, there was $29,290 of compensation expense, excluding forfeitures, that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.39 years. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The following table reflects the reconciliation between basic and diluted earnings per share. Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Net Income $ 95,670 $ 71,982 $ 197,783 $ 163,198 Common share information: Weighted average shares outstanding for basic earnings per share 1 73,580 76,202 73,798 76,354 Dilutive effect of stock options and restricted stock 117 78 122 142 Weighted average shares outstanding for diluted earnings per share 1 73,697 76,280 73,920 76,496 Basic earnings per share 2 $ 1.30 $ 0.94 $ 2.68 $ 2.14 Diluted earnings per share 2 $ 1.30 $ 0.94 $ 2.68 $ 2.13 1 The change in weighted average shares outstanding is primarily due to the weighted effect of the Company's repurchase of 2,800 shares of common stock during all of fiscal 2021 (675 shares repurchased during the first half of fiscal 2021) and the repurchase of 1,250 shares during fiscal year-to-date 2022. 2 Common stock repurchases during the trailing twelve months contributed $0.05 to diluted earnings per share for the second fiscal quarter and $0.09 for year-to-date fiscal 2022. Per share information is based on the weighted average number of common shares outstanding for the three and six months ended December 31, 2021, and 2020. Stock options and restricted stock units have been included in the calculation of earnings per share to the extent they are dilutive. There were 28 and 23 anti-dilutive stock options or restricted stock units excluded for the three and six months ended December 31, 2021, respectively, and 21 were excluded for both the three and six months ended December 31, 2020. |
Reportable Segment Information
Reportable Segment Information (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
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 on-premise installations or JKHY cloud-based services) for banks and credit unions. The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and 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, Automated Clearing House ("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, and many can be used independently. The Corporate and 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. Three Months Ended December 31, 2021 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 145,699 $ 23,944 $ 112,490 $ 14,078 $ 296,211 Processing 9,179 158,584 29,234 688 197,685 Total Revenue 154,878 182,528 141,724 14,766 493,896 Cost of Revenue 64,554 95,570 58,151 64,550 282,825 Research and Development 29,916 Selling, General, and Administrative 55,493 Total Expenses 368,234 SEGMENT INCOME $ 90,324 $ 86,958 $ 83,573 $ (49,784) OPERATING INCOME 125,662 INTEREST INCOME (EXPENSE) (441) INCOME BEFORE INCOME TAXES $ 125,221 Three Months Ended December 31, 2020 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 126,758 $ 14,807 $ 98,829 $ 10,479 $ 250,873 Processing 8,190 140,375 22,579 344 171,488 Total Revenue 134,948 155,182 121,408 10,823 422,361 Cost of Revenue 58,485 86,455 52,407 60,435 257,782 Research and Development 26,780 Selling, General, and Administrative 44,167 Total Expenses 328,729 SEGMENT INCOME $ 76,463 $ 68,727 $ 69,001 $ (49,612) OPERATING INCOME 93,632 INTEREST INCOME (EXPENSE) (65) INCOME BEFORE INCOME TAXES $ 93,567 Six Months Ended December 31, 2021 Core Payments Complementary Corporate & Other Total REVENUE Services and Support 301,536 39,594 227,443 25,131 593,704 Processing 18,627 312,556 55,762 1,303 388,248 Total Revenue 320,163 352,150 283,205 26,434 981,952 Cost of Revenue 131,456 188,795 113,635 125,574 559,460 Research and Development 56,670 Selling, General, and Administrative 106,565 Total Expenses 722,695 SEGMENT INCOME $ 188,707 $ 163,355 $ 169,570 $ (99,140) OPERATING INCOME 259,257 INTEREST INCOME (EXPENSE) (683) INCOME BEFORE INCOME TAXES $ 258,574 Six Months Ended December 31, 2020 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 271,344 $ 31,111 $ 207,378 $ 22,037 $ 531,870 Processing 16,759 280,804 44,384 344 342,291 Total Revenue 288,103 311,915 251,762 22,381 874,161 Cost of Revenue 122,347 172,783 104,431 121,150 520,711 Research and Development 52,837 Selling, General, and Administrative 89,393 Total Expenses 662,941 SEGMENT INCOME $ 165,756 $ 139,132 $ 147,331 $ (98,769) OPERATING INCOME 211,220 INTEREST INCOME (EXPENSE) (115) INCOME BEFORE INCOME TAXES $ 211,105 The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Executive Officer, who is also the Chief Operating Decision Maker. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Text Block) | 6 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTSNone. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of JKHY and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. |
Allowance for Credit Losses | The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. |
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. |
Income Tax, Policy | Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement basis 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 unrecognized benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS For cash equivalents, certificates of deposit, 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) | 6 Months Ended |
Dec. 31, 2021 | |
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. 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. 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 the commencement date based on the present value of lease payments over the lease term. 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. The determination of the incremental borrowing rate requires judgment and is determined by 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 leases certain office space, data centers and equipment with remaining terms of 1 to 12 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. Variable lease costs are recognized as a variable lease expense when incurred. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies- Loss on Disposal of Assets, net (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended December 31, 2021, and 2020: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Allowance for credit losses - beginning balance $ 7,660 $ 6,731 $ 7,267 $ 6,719 Cumulative effect of accounting standards update adoption — — — 493 Current provision for expected credit losses 300 370 840 910 Write-offs charged against allowance (227) (263) (373) (1,286) Recoveries of amounts previously written off — (1) (1) (4) Other — (7) — (2) Allowance for credit losses - ending balance $ 7,733 $ 6,830 $ 7,733 $ 6,830 |
Revenue and Deferred Costs Re_2
Revenue and Deferred Costs Revenue and Deferred Costs (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
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 10, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue. Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Private and Public Cloud 1 $ 138,340 $ 124,498 $ 273,982 $ 245,456 Product Delivery and Services 79,499 48,414 131,014 105,312 On-Premise Support 2 78,372 77,961 188,708 181,102 Services and Support 296,211 250,873 593,704 531,870 Processing 197,685 171,488 388,248 342,291 Total Revenue $ 493,896 $ 422,361 $ 981,952 $ 874,161 1 The name of this revenue stream was changed in fiscal 2021 from "outsourcing and cloud" to "private and public cloud" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current fiscal quarter as it was in the comparative quarter of fiscal 2021 and prior. 2 The name of this revenue stream was changed in fiscal 2021 from "in-house support" to "on-premise support" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current fiscal quarter as it was in the comparative quarter of fiscal 2021 and prior. |
Contract Balances [Table Text Block] | Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. December 31, June 30, Receivables, net $ 236,096 $ 306,564 Contract Assets - Current 20,374 22,884 Contract Assets - Non-current 59,119 52,920 Contract Liabilities (Deferred Revenue) - Current 208,733 319,748 Contract Liabilities (Deferred Revenue) - Non-current 67,045 75,852 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements[Table Text Block] | Fair value of financial assets included in current assets is as follows: Estimated Fair Value Measurements Total Fair Level 1 Level 2 Level 3 Value December 31, 2021 Financial Assets: Certificates of Deposit $ — $ 1,209 $ — $ 1,209 Financial Liabilities: Revolving credit facility $ — $ 240,000 $ — $ 240,000 June 30, 2021 Financial Assets: Certificates of Deposit $ — $ 1,200 $ — $ 1,200 Financial Liabilities: Revolving credit facility $ — $ 100,000 $ — $ 100,000 |
Leases Leases (Tables)
Leases Leases (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Maturity of Lease Liabilities Under ASC 842 [Table Text Block] | Maturity of Lease Liabilities under ASC 842 Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021*: Due Dates (fiscal year) Future Minimum Rental Payments 2022 (remaining period) 6,617 2023 12,089 2024 10,029 2025 7,266 2026 6,342 Thereafter 19,388 Total lease payments $ 61,731 Less: interest (5,078) Present value of lease liabilities $ 56,653 * Financing leases were immaterial to the fiscal quarter, so a maturity of lease liabilities table has only been included for operating leases. Lease payments included $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At December 31, 2021, the Company had $60 in legally binding lease payments for one lease that was signed but not yet commenced. The lease commencement date is March 1, 2022, and the lease term is 36 months. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of option plan activity under this plan is as follows: Number of Shares Weighted Average Exercise Price Aggregate Outstanding July 1, 2021 22 $ 87.27 Granted — — Forfeited — — Exercised — — Outstanding December 31, 2021 22 $ 87.27 $ 1,729 Vested and Expected to Vest December 31, 2021 22 $ 87.27 $ 1,729 Exercisable December 31, 2021 22 $ 87.27 $ 1,729 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes non-vested performance and restricted stock unit awards as of December 31, 2021: Units Weighted Aggregate Intrinsic Value Outstanding July 1, 2021 294 $ 160.22 Granted 130 178.47 Vested (40) 148.56 Forfeited (41) 198.03 Outstanding December 31, 2021 343 $ 163.99 $ 57,242 |
ScheduleOfShareBasedPaymentAwardRSUValuationAssumptionsTableTextBlock [Table Text Block] | The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows. Fiscal year 2022 Monte Carlo award inputs: Volatility 28.55 % Risk free interest rate 0.32 % Annual dividend based on most recent quarterly dividend $ 1.84 Beginning TSR 65 % |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reflects the reconciliation between basic and diluted earnings per share. Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Net Income $ 95,670 $ 71,982 $ 197,783 $ 163,198 Common share information: Weighted average shares outstanding for basic earnings per share 1 73,580 76,202 73,798 76,354 Dilutive effect of stock options and restricted stock 117 78 122 142 Weighted average shares outstanding for diluted earnings per share 1 73,697 76,280 73,920 76,496 Basic earnings per share 2 $ 1.30 $ 0.94 $ 2.68 $ 2.14 Diluted earnings per share 2 $ 1.30 $ 0.94 $ 2.68 $ 2.13 1 The change in weighted average shares outstanding is primarily due to the weighted effect of the Company's repurchase of 2,800 shares of common stock during all of fiscal 2021 (675 shares repurchased during the first half of fiscal 2021) and the repurchase of 1,250 shares during fiscal year-to-date 2022. 2 Common stock repurchases during the trailing twelve months contributed $0.05 to diluted earnings per share for the second fiscal quarter and $0.09 for year-to-date fiscal 2022. |
Reportable Segment Informatio_2
Reportable Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended December 31, 2021 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 145,699 $ 23,944 $ 112,490 $ 14,078 $ 296,211 Processing 9,179 158,584 29,234 688 197,685 Total Revenue 154,878 182,528 141,724 14,766 493,896 Cost of Revenue 64,554 95,570 58,151 64,550 282,825 Research and Development 29,916 Selling, General, and Administrative 55,493 Total Expenses 368,234 SEGMENT INCOME $ 90,324 $ 86,958 $ 83,573 $ (49,784) OPERATING INCOME 125,662 INTEREST INCOME (EXPENSE) (441) INCOME BEFORE INCOME TAXES $ 125,221 Three Months Ended December 31, 2020 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 126,758 $ 14,807 $ 98,829 $ 10,479 $ 250,873 Processing 8,190 140,375 22,579 344 171,488 Total Revenue 134,948 155,182 121,408 10,823 422,361 Cost of Revenue 58,485 86,455 52,407 60,435 257,782 Research and Development 26,780 Selling, General, and Administrative 44,167 Total Expenses 328,729 SEGMENT INCOME $ 76,463 $ 68,727 $ 69,001 $ (49,612) OPERATING INCOME 93,632 INTEREST INCOME (EXPENSE) (65) INCOME BEFORE INCOME TAXES $ 93,567 Six Months Ended December 31, 2021 Core Payments Complementary Corporate & Other Total REVENUE Services and Support 301,536 39,594 227,443 25,131 593,704 Processing 18,627 312,556 55,762 1,303 388,248 Total Revenue 320,163 352,150 283,205 26,434 981,952 Cost of Revenue 131,456 188,795 113,635 125,574 559,460 Research and Development 56,670 Selling, General, and Administrative 106,565 Total Expenses 722,695 SEGMENT INCOME $ 188,707 $ 163,355 $ 169,570 $ (99,140) OPERATING INCOME 259,257 INTEREST INCOME (EXPENSE) (683) INCOME BEFORE INCOME TAXES $ 258,574 Six Months Ended December 31, 2020 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 271,344 $ 31,111 $ 207,378 $ 22,037 $ 531,870 Processing 16,759 280,804 44,384 344 342,291 Total Revenue 288,103 311,915 251,762 22,381 874,161 Cost of Revenue 122,347 172,783 104,431 121,150 520,711 Research and Development 52,837 Selling, General, and Administrative 89,393 Total Expenses 662,941 SEGMENT INCOME $ 165,756 $ 139,132 $ 147,331 $ (98,769) OPERATING INCOME 211,220 INTEREST INCOME (EXPENSE) (115) INCOME BEFORE INCOME TAXES $ 211,105 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses- beginning balance, including the cumulative effect of accounting standards update adoption | $ 7,660 | $ 6,731 | $ 7,267 | $ 6,719 |
Current provision for expected credit losses | 300 | 370 | 840 | 910 |
Write-offs charged against allowance | (227) | (263) | (373) | (1,286) |
Recoveries of amounts previously written off | 0 | (1) | (1) | (4) |
Other | 0 | (7) | 0 | (2) |
Allowance for credit losses- ending balance | 7,733 | 6,830 | 7,733 | 6,830 |
Accounting Standards Update 2016-13 | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses- beginning balance, including the cumulative effect of accounting standards update adoption | $ 0 | $ 0 | $ 0 | $ (493) |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Accumulated Depreciation, Property and Equipment | $ 453,439 | $ 435,169 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 983,626 | $ 921,050 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies Purchase of Investments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Automated Bookkeeping, Inc. [Member] | PREFERRED SHARES | |
Investment Owned, at Cost | $ 13,250 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Class of Stock Disclosures [Abstract] | |||
Treasury Stock, Common, Shares | 31,043 | 29,793 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 3,948 | 5,198 | |
Treasury Stock, Value | $ 1,807,119 | $ 1,613,202 | |
Treasury Stock, Shares, Acquired | 1,250 | 675 | 2,800 |
Revenue and Deferred Costs Disa
Revenue and Deferred Costs Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 493,896 | $ 422,361 | $ 981,952 | $ 874,161 |
Private and Public Cloud | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 138,340 | 124,498 | 273,982 | 245,456 |
Product Delivery and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 79,499 | 48,414 | 131,014 | 105,312 |
On-Premise Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 78,372 | 77,961 | 188,708 | 181,102 |
Services and Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 296,211 | 250,873 | 593,704 | 531,870 |
Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 197,685 | $ 171,488 | $ 388,248 | $ 342,291 |
Revenue and Deferred Costs Cont
Revenue and Deferred Costs Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, net | $ 236,096 | $ 306,564 |
Contract Assets- Current | 20,374 | 22,884 |
Contract Asset- Non-current | 59,119 | 52,920 |
Contract Liabilities (Deferred Revenue)- Current | 208,733 | 319,748 |
Contract Liabilities (Deferred Revenue)- Non- current | $ 67,045 | $ 75,852 |
Revenue and Deferred Costs Re_3
Revenue and Deferred Costs Revenue Recognition Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized from beginning deferred balance | $ 89,257 | $ 79,421 | $ 157,781 | $ 156,666 |
Future revenue related to unsatisfied performance obligations | $ 5,154,912 | $ 5,154,912 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Future revenue related to unsatisfied performance obligations, expected percentage to be recognized for given time frame | 26.00% | 26.00% | ||
Future revenue related to unsatisfied performance obligations, expected timing | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Future revenue related to unsatisfied performance obligations, expected percentage to be recognized for given time frame | 20.00% | 20.00% | ||
Future revenue related to unsatisfied performance obligations, expected timing | 12 months | 12 months |
Revenue and Deferred Costs Co_2
Revenue and Deferred Costs Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Capitalized Contract Cost | $ 347,867 | $ 347,867 | $ 314,807 | ||
Amortization of deferred contract costs | $ 32,154 | $ 28,794 | $ 67,998 | $ 62,620 |
Fair Value Measures and Discl_4
Fair Value Measures and Disclosures (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | $ 1,209 | $ 1,200 |
Certificates of Deposit | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | 0 | 0 |
Certificates of Deposit | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | 1,209 | 1,200 |
Certificates of Deposit | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | 0 | 0 |
Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 240,000 | 100,000 |
Revolving Credit Facility [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 0 | 0 |
Revolving Credit Facility [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 240,000 | 100,000 |
Revolving Credit Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 0 | $ 0 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Operating Lease, Right-of-Use Asset | $ 51,888 | $ 51,888 | $ 55,977 | ||
Finance Lease, Right-of-Use Asset | 124 | 124 | 188 | ||
Operating Lease Liability, present value | 56,653 | 56,653 | 60,828 | ||
Operating Lease, Liability, Current | 11,623 | 11,623 | 11,460 | ||
Operating Lease, Liability, Noncurrent | 45,030 | 45,030 | 49,368 | ||
Finance Lease, Liability | 129 | 129 | 193 | ||
Finance Lease, Liability, Current | 103 | 103 | 110 | ||
Finance Lease, Liability, Noncurrent | 26 | 26 | 83 | ||
Accumulated Amortization Operating Lease Right-of-use asset | 27,625 | 27,625 | 23,813 | ||
Accumulated Amortization Finance Lease Right-of-use asset | 206 | 206 | $ 153 | ||
Operating Lease, Cost | 3,327 | $ 3,766 | 6,759 | $ 7,675 | |
Finance Lease, Cost | 27 | 30 | 55 | 30 | |
Variable Lease, Cost | $ 441 | $ 809 | 840 | 2,189 | |
Operating Lease, Cash Flows for Payments | 6,802 | 6,872 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,870 | 4,485 | |||
Payments on Financing Leases | $ 55 | $ 63 | |||
Operating Lease, Weighted Average Remaining Lease Term | 77 months | 77 months | 81 months | ||
Operating Lease, Weighted Average Discount Rate, Percent | 2.62% | 2.62% | 2.67% | ||
Finance Lease, Weighted Average Remaining Lease Term | 15 months | 15 months | 21 months | ||
Finance Lease, Weighted Average Discount Rate, Percent | 2.36% | 2.36% | 2.39% | ||
Minimum [Member] | |||||
Lease term | 1 year | 1 year | |||
Maximum [Member] | |||||
Lease term | 12 years | 12 years |
Leases Lease Maturity (Details)
Leases Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Leases [Abstract] | ||
2022 (remaining period) | $ 6,617 | |
2023 | 12,089 | |
2024 | 10,029 | |
2025 | 7,266 | |
2026 | 6,342 | |
Thereafter | 19,388 | |
Total lease payments | 61,731 | |
Less: interest | (5,078) | |
Operating Lease Liability, present value | 56,653 | $ 60,828 |
Operating Lease Liability Option To Extend Amounts | 5,464 | |
Lessee, Lease Not Yet Commenced, Future Minimum Payments Due | $ 60 | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 36 months |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Interest paid | $ 604 | $ 105 | |
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 | $ 700,000 | ||
Revolving Credit Facility, Expiration Date | Feb. 10, 2025 | ||
Long-term Debt | $ 240,000 | $ 100,000 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Loan, Unused Borrowing Capacity | $ 5,000 | ||
Unsecured Loan, Maturity Date | Apr. 30, 2023 | ||
Unsecured Loan, Amount Outstanding | $ 0 | $ 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 | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Tax Rate | 23.60% | 23.10% | 23.50% | 22.70% |
Income Taxes Paid, Net | $ 40,687 | $ 24,794 | ||
Unrecognized Tax Benefits | $ 9,594 | 9,594 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 8,891 | 8,891 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,425 | $ 1,896 | 1,425 | $ 1,896 |
Minimum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | 3,500 | 3,500 | ||
Maximum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | $ 4,500 | $ 4,500 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense for stock-based compensation | $ 6,956 | $ 5,127 | $ 13,027 | $ 9,752 |
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 | $ 0 | ||
Weighted average remaining contractual term, stock options | 4 years 6 months | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense yet to be recognized | $ 29,290 | $ 29,290 | ||
Compensation expense yet to be recognized, period for recognition | 1 year 4 months 20 days | |||
Granted, number of shares | 130 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 48 | |||
2015 EIP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 3,000 | 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 | 82 | |||
Fair value on grant date less PV of dividends [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 19 | |||
Fair value under Monte Carlo [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 29 |
Stock Based Compensation Stock
Stock Based Compensation Stock Options (Details) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, period start, number of shares | shares | 22 |
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 | 22 |
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 | $ | $ 1,729 |
Vested and expected to vest, period end, number of shares | shares | 22 |
Vested and expected to vest, period end, weighted average exercise price | $ / shares | $ 87.27 |
Vested and expected to vest, period end, intrinsic value | $ | $ 1,729 |
Exercisable, period end, number of shares | shares | 22 |
Exercisable, period end, weighted average exercise price | $ / shares | $ 87.27 |
Exercisable, period end, intrinsic value | $ | $ 1,729 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Unit Awards (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
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 | 294 |
Granted, number of shares | 130 |
Vested, number of shares | (40) |
Forfeited, number of shares | (41) |
Outstanding, period end, number of shares | 343 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 160.22 |
Granted, weighted average grant date fair value | $ / shares | 178.47 |
Vested, weighted average grant date fair value | $ / shares | 148.56 |
Forfeited, weighted average grant date fair value | $ / shares | 198.03 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 163.99 |
Restricted Stock Units, Aggregate Intrinsic Value, Outstanding | $ | $ 57,242 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 48 |
Fair value under Monte Carlo [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 29 |
Fair value on grant date less PV of dividends [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 82 |
Fair value on grant date less PV of dividends [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 19 |
Stock Based Compensation RSU Me
Stock Based Compensation RSU Measurement Date Assumptions (Details) - Compensation Peer Group [Member] | 6 Months Ended |
Dec. 31, 2021$ / sharesRate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Volatility | 28.55% |
Risk free interest rate | 0.32% |
Estimated annual dividend | $ / shares | $ 1.84 |
Beginning total shareholder return | 65.00% |
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 | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||||
Net Income | $ 95,670 | $ 71,982 | $ 197,783 | $ 163,198 | |
Common share information: | |||||
Weighted average shares outstanding for basic earnings per share | 73,580 | 76,202 | 73,798 | 76,354 | |
Dilutive effect of stock options and restricted stock | 117 | 78 | 122 | 142 | |
Weighted average shares outstanding for diluted earnings per share | 73,697 | 76,280 | 73,920 | 76,496 | |
Basic earnings per share | $ 1.30 | $ 0.94 | $ 2.68 | $ 2.14 | |
Diluted earnings per share | 1.30 | $ 0.94 | $ 2.68 | $ 2.13 | |
Treasury Stock, Shares, Acquired | 1,250 | 675 | 2,800 | ||
Common stock repurchase impact on diluted earnings per share | $ 0.05 | $ 0.09 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 28 | 21 | 23 | 21 |
Reportable Segment Informatio_3
Reportable Segment Information Narrative (Details) | 6 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
Reportable Segment Informatio_4
Reportable Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 493,896 | $ 422,361 | $ 981,952 | $ 874,161 |
Cost of Revenue | 282,825 | 257,782 | 559,460 | 520,711 |
Research and Development | 29,916 | 26,780 | 56,670 | 52,837 |
Selling, General and Administrative | 55,493 | 44,167 | 106,565 | 89,393 |
Total Expenses | 368,234 | 328,729 | 722,695 | 662,941 |
OPERATING INCOME | 125,662 | 93,632 | 259,257 | 211,220 |
INTEREST INCOME (EXPENSE) | (441) | (65) | (683) | (115) |
INCOME BEFORE INCOME TAXES | 125,221 | 93,567 | 258,574 | 211,105 |
Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 154,878 | 134,948 | 320,163 | 288,103 |
Cost of Revenue | 64,554 | 58,485 | 131,456 | 122,347 |
SEGMENT INCOME | 90,324 | 76,463 | 188,707 | 165,756 |
Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 182,528 | 155,182 | 352,150 | 311,915 |
Cost of Revenue | 95,570 | 86,455 | 188,795 | 172,783 |
SEGMENT INCOME | 86,958 | 68,727 | 163,355 | 139,132 |
Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 141,724 | 121,408 | 283,205 | 251,762 |
Cost of Revenue | 58,151 | 52,407 | 113,635 | 104,431 |
SEGMENT INCOME | 83,573 | 69,001 | 169,570 | 147,331 |
Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 14,766 | 10,823 | 26,434 | 22,381 |
Cost of Revenue | 64,550 | 60,435 | 125,574 | 121,150 |
SEGMENT INCOME | (49,784) | (49,612) | (99,140) | (98,769) |
Services and Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 296,211 | 250,873 | 593,704 | 531,870 |
Services and Support [Member] | Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 145,699 | 126,758 | 301,536 | 271,344 |
Services and Support [Member] | Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 23,944 | 14,807 | 39,594 | 31,111 |
Services and Support [Member] | Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 112,490 | 98,829 | 227,443 | 207,378 |
Services and Support [Member] | Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 14,078 | 10,479 | 25,131 | 22,037 |
Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 197,685 | 171,488 | 388,248 | 342,291 |
Processing [Member] | Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 9,179 | 8,190 | 18,627 | 16,759 |
Processing [Member] | Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 158,584 | 140,375 | 312,556 | 280,804 |
Processing [Member] | Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 29,234 | 22,579 | 55,762 | 44,384 |
Processing [Member] | Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 688 | $ 344 | $ 1,303 | $ 344 |