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Operations by Segments and Geographic Areas (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Segment Reporting Information

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,
	2020		2019		2018
	(in thousands)
Segment revenue:
Cloud Solutions	$	252,349	$	232,106	$	203,599
Banking Solutions	97,785		93,956		91,851
Payments and Documents	75,048		77,322		80,063
Other	17,039		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 Solutions	4,849		8,227		9,703
Payments and Documents	19,336		21,207		22,383
Other	(10,459)		(5,301)		(2,199)
Total measure of segment profit	$	67,728	$	77,246	$	73,739

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

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


	Fiscal Year Ended June 30,
	2020		2019		2018
	(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.

Schedule of Segment Depreciation and Amortization Expense Included in Segment Measure of Profit (Loss)

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


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in thousands)
Depreciation and other amortization expense:
Cloud Solutions	$	15,903	$	13,543	$	11,984
Banking Solutions	9,416		7,865		6,333
Payments and Documents	1,011		1,146		1,289
Other	902		357		388
Total depreciation and other amortization expense	$	27,232	$	22,911	$	19,994

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; 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,
	2020		2019		2018
	(in thousands)
United States	$	277,153	$	261,779	$	242,170
United Kingdom	106,492		99,746		91,489
Switzerland	39,071		38,698		39,759
Other	19,505		21,739		20,678
Total revenues from unaffiliated customers	$	442,221	$	421,962	$	394,096

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 June 30,
	2020		2019
	(in thousands)
Long-lived assets:
United States	$	64,858	$	44,357
United Kingdom	41,835		32,035
Other	16,977		5,326
Total long-lived assets	$	123,670	$	81,718

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.


(in thousands)	Twelve Months Ended June 30,
	2020						2019
	Subscriptions Revenue		Total Revenue		Subscriptions Revenue		Total Revenue
Payment Settlement Solutions ⁽¹⁾	$	149,109	$	167,547	$	131,433	$	155,442
Banking Solutions	80,176		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.