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Operations by Segments and Geographic Areas
 12 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Operations by Segments and Geographic Areas Operations by Segments and Geographic Areas
Segment Information
        Operating segments are the components of our business for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our operating segments are generally organized by the type of product or service offered and by geography.
During the fourth quarter of the fiscal year ended June 30, 2020, we realigned our internal financial reporting and changed the manner in which financial information related to our PTX solutions is presented to our chief executive officer. This resulted in PTX solutions operating activity being reclassified into our Cloud Solutions segment rather than our Payments and Documents segment. To ensure a consistent presentation of the measurement of segment revenues and profit or loss, this change is reflected for all financial periods presented.
        Similar operating segments have been aggregated into four reportable segments as follows:
        Cloud Solutions. Our Cloud Solutions segment provides customers with SaaS technology offerings that facilitate electronic payments, electronic invoicing, and spend management. Our payment platforms (Paymode-X, PTX and financial messaging) are included in this segment. These solutions are highly scalable, secure and cost effective and facilitate cash payment and transaction settlement between businesses, their vendors and banks. Our legal spend management solutions, which enable customers to create more efficient processes for managing invoices generated by outside law firms while offering insight into important legal spend factors such as expense monitoring and outside counsel performance, are also included within this segment. Revenue within this segment is generally recognized on a subscription or transaction basis.
Banking Solutions. Our Banking Solutions segment provides solutions that are specifically designed for banking and financial institution customers. Our Banking Solutions products are sold predominantly on a hosted basis, with revenue recognized on a subscription or transaction basis.
Payments and Documents. Our Payments and Documents segment supplies financial business process management software solutions, including making and collecting payments, sending and receiving invoices, and generating and storing business documents. This segment also provides a range of standard professional services and equipment and supplies that complement and enhance our core software products. When licensed for on-premise deployment, software license revenue is typically recorded upon delivery of the software and commencement of the license term. If the solution is hosted by us, we typically record revenue over time. Professional services revenue is normally recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period.
        Other. Our Other segment consists of our fraud solutions and our healthcare solutions. The Other segment loss reported below is attributable to the operating results of our fraud solutions, which reflects the revenue contribution from the legacy sales channel we acquired and the burden of certain other centralized costs; however our fraud solutions are sold as part of all of our operating segments. Our healthcare solutions focus on eliminating paper intensive processes and providing electronic signature and mobile document capabilities to allow healthcare organizations to improve efficiency and reduce costs. Software revenue for perpetual licenses of our fraud and healthcare products is typically recorded upon delivery of the software and commencement of the license term. Professional services revenue is recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period which is normally twelve months.
        Periodically a sales person in one operating segment will sell products and services that are typically sold within a different operating segment. In such cases, the transaction is generally recorded by the operating segment to which the sales person is assigned. Accordingly, segment results can include the results of transactions that have been allocated to a specific segment based on the contributing sales resources, rather than the nature of the product or service. Conversely, a transaction can be recorded by the operating segment primarily responsible for delivery to the customer, even if the sales person is assigned to a different operating segment.
        Our chief operating decision maker assesses segment performance based on a variety of factors that normally include segment revenue and a segment measure of profit or loss. Each segment’s measure of profit or loss is on a pre-tax basis and excludes certain items as presented in our reconciliation of the measure of total segment profit to GAAP income (loss) before income taxes that follows. There are no inter-segment sales; accordingly, the measure of segment revenue and profit or loss reflects only revenues from external customers. The costs of certain corporate level expenses, primarily general and administrative expenses, are allocated to our operating segments based on a percentage of the segment’s revenues.
        We do not track or assign our assets by operating segment.
        Segment information for the fiscal years ended June 30, 2020, 2019 and 2018, according to the segment descriptions above, is as follows:
Fiscal Year Ended June 30,
202020192018
(in thousands)
Segment revenue:
Cloud Solutions$252,349 $232,106 $203,599 
Banking Solutions97,785 93,956 91,851 
Payments and Documents75,048 77,322 80,063 
Other17,039 18,578 18,583 
Total segment revenue$442,221 $421,962 $394,096 
Segment measure of profit (loss):
Cloud Solutions$54,002 $53,113 $43,852 
Banking Solutions4,849 8,227 9,703 
Payments and Documents19,336 21,207 22,383 
Other(10,459)(5,301)(2,199)
Total measure of segment profit$67,728 $77,246 $73,739 
        A reconciliation of the measure of segment profit to GAAP (loss) income before income taxes is as follows:
Fiscal Year Ended June 30,
202020192018
(in thousands)
Total measure of segment profit$67,728 $77,246 $73,739 
Less:
Amortization of acquisition-related intangible assets(20,370)(21,336)(22,076)
Stock-based compensation plan expense(42,044)(41,695)(34,200)
Acquisition and integration-related expenses(5,647)(4,648)(2,564)
Restructuring expenses(1,652)(1,881)(1,495)
Legal settlement— — (1,269)
Other non-core income (expense)94 (550)150 
Global ERP system implementation and other costs(485)(3,395)(6,430)
Other (expense) income, net of pension adjustments(5,025)3,153 (4,730)
(Loss) income before income taxes$(7,401)$6,894 $1,125 
——————
(1)On July 1, 2018, we adopted an accounting standard update that changes the classification of certain pension related items. For purposes of this reconciliation of segment profit, we have presented pension related adjustments discretely, not as a component of other expense, net.
        The following depreciation and other amortization expense amounts are included in the segment measure of profit:
Fiscal Year Ended June 30,
202020192018
(in thousands)
Depreciation and other amortization expense:
Cloud Solutions$15,903 $13,543 $11,984 
Banking Solutions9,416 7,865 6,333 
Payments and Documents1,011 1,146 1,289 
Other902 357 388 
Total depreciation and other amortization expense$27,232 $22,911 $19,994 
Geographic Information
        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; particularly in respect of financial institution customers located in Australia for which the point of sale was the United States.
Fiscal Year Ended June 30,
202020192018
(in thousands)
United States$277,153 $261,779 $242,170 
United Kingdom106,492 99,746 91,489 
Switzerland39,071 38,698 39,759 
Other19,505 21,739 20,678 
Total revenues from unaffiliated customers$442,221 $421,962 $394,096 
        Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows:
At June 30,
20202019
(in thousands)
Long-lived assets:
United States$64,858 $44,357 
United Kingdom41,835 32,035 
Other16,977 5,326 
Total long-lived assets$123,670 $81,718 
Disaggregation of Revenue
        The tables below present our subscriptions revenue and total revenue disaggregated by major product classification.
(in thousands)Twelve Months Ended June 30,
20202019
Subscriptions RevenueTotal RevenueSubscriptions RevenueTotal Revenue
Payment Settlement Solutions (1)
$149,109 $167,547 $131,433 $155,442 
Banking Solutions80,176 97,785 67,680 93,956 
Legal Spend Management (2)
84,802 84,802 76,663 76,664 
All other (3)
25,323 92,087 19,857 95,900 
Total revenues$339,410 $442,221 $295,633 $421,962 
        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 Paymode-X, PTX and financial messaging payment platforms, all of which are components of our Cloud Solutions segment.
(2) Component of our Cloud Solutions segment.
        (3) Consists of our legacy business payments and documents products which are components of our Payments and Documents segment and revenue from our Other segment.