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Operations by Segments and Geographic Areas (Tables)

9 Months Ended

Mar. 31, 2020

Schedule of Segment Reporting Information

Segment information for the three and nine months ended March 31, 2020 and 2019 according to the segment descriptions above, is as follows:



	Three Months Ended March 31,						Nine Months Ended March 31,
	2020			2019			2020			2019
	(in thousands)
Segment revenue:
Cloud Solutions	$	54,008		$	51,439		$	161,905		$	151,342
Banking Solutions	24,545			23,903			71,981			69,283
Payments and Documents	29,213			26,094			84,771			78,271
Other	3,949			5,002			12,925			14,825
Total segment revenue	$	111,715		$	106,438		$	331,582		$	313,721
Segment measure of profit:
Cloud Solutions	$	9,614		$	11,463		$	32,598		$	32,497
Banking Solutions	1,585			2,082			1,744			6,097
Payments and Documents	8,213			6,933			24,853			22,799
Other	(3,397		)	(1,545		)	(7,459		)	(3,019		)
Total measure of segment profit	$	16,015		$	18,933		$	51,736		$	58,374

Reconciliation of Measure of Total Segment Profit to GAAP Income (Loss) Before Income Taxes

A reconciliation of the measure of total segment profit to GAAP loss before income taxes is as follows:



	Three Months Ended March 31,						Nine Months Ended March 31,
	2020			2019			2020			2019
	(in thousands)
Total measure of segment profit	$	16,015		$	18,933		$	51,736		$	58,374
Less:
Amortization of acquisition-related intangible assets	(5,121		)	(5,230		)	(15,284		)	(15,809		)
Stock-based compensation plan expense	(9,289		)	(10,015		)	(31,298		)	(31,906		)
Acquisition and integration-related expenses	(986		)	(1,373		)	(4,640		)	(2,966		)
Restructuring expense	(730		)	(1,332		)	(939		)	(1,963		)
Other non-core benefit	—			—			10			—
Global ERP system implementation and other costs	(61		)	(557		)	(485		)	(3,110		)
Other expense, net of pension adjustments	(1,237		)	(853		)	(3,044		)	(2,849		)
Loss before income taxes	$	(1,409	)	$	(427	)	$	(3,944	)	$	(229	)

Schedule of Segment Depreciation and Amortization Expense Included in Measure of Segment Profit

The following depreciation and other amortization expense amounts are included in the measure of segment profit:



	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2019		2020		2019
	(in thousands)
Depreciation and other amortization expense:
Cloud Solutions	$	3,540	$	2,854	$	10,121	$	8,663
Banking Solutions	2,480		1,919		6,777		5,634
Payments and Documents	887		719		2,272		2,202
Other	248		84		637		268
Total depreciation and other amortization expense	$	7,155	$	5,576	$	19,807	$	16,767

Summary of Revenue Disaggregated by Major Product Category and the Related Financial Statement Classification of Revenue

The tables below present our subscriptions revenue and total revenue disaggregated by major product classification for the three and nine months ended March 31, 2020 and 2019.



(in thousands)	Three Months Ended March 31, 2020
	2020				2019
	Subscriptions Revenue		Total Revenue		Subscriptions Revenue		Total Revenue
Payment Settlement Solutions ⁽¹⁾	$	37,831	$	42,084	$	33,058	$	38,572
Banking Solutions	20,984		24,545		17,819		23,903
Legal Spend Management	21,521		21,521		18,916		18,916
All other ⁽²⁾	7,195		23,565		5,709		25,047
Total revenues	$	87,531	$	111,715	$	75,502	$	106,438



(in thousands)	Nine Months Ended March 31,
	2020				2019
	Subscriptions Revenue		Total Revenue		Subscriptions Revenue		Total Revenue
Payment Settlement Solutions ⁽¹⁾	$	110,201	$	124,584	$	95,272	$	114,101
Banking Solutions	57,664		71,981		49,410		69,283
Legal Spend Management	63,508		63,508		56,461		56,461
All other ⁽²⁾	20,309		71,509		15,415		73,876
Total revenues	$	251,682	$	331,582	$	216,558	$	313,721

We derive the majority of our revenue from subscription arrangements. The substantial majority of our non-subscription revenue is derived from software support and maintenance fees and from professional services, with such revenue being recorded by all of our operating segments, but with the largest concentration of this revenue being derived from our legacy business payments and documents products in our Payments and Documents segment.

⁽¹⁾ Consists of our cloud-based business payments settlement network Paymode-X, our financial messaging settlement network (each of which are components of our Cloud Solutions segment) and our PTX payment solution (which is a component of our Payments and Documents segment).

⁽²⁾Consists of our legacy business payments and documents products (which are components of our Payments and Documents segment) and revenue from our Other segment.

Schedule of Revenue Based on Point of Sale

We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here.



	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2019		2020		2019
	(in thousands)
Revenues from unaffiliated customers:
United States	$	69,164	$	66,227	$	207,566	$	194,132
United Kingdom	27,928		24,942		80,002		73,313
Switzerland	9,694		9,682		29,213		29,289
Other	4,929		5,587		14,801		16,987
Total revenues from unaffiliated customers	$	111,715	$	106,438	$	331,582	$	313,721

Schedule of Long-Lived Assets, Based on Geographical Location, Excluding Deferred Tax Assets and Intangible Assets

Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows:



	At March 31,		At June 30,
	2020		2019
	(in thousands)
Long-lived assets:
United States	$	62,823	$	44,357
United Kingdom	44,542		32,035
Other	15,189		5,326
Total long-lived assets	$	122,554	$	81,718