REPORTABLE SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions.

The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate & Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including: ATM, debit, and credit card transaction processing services; online and mobile bill pay solutions; ACH origination and remote deposit capture processing; and risk management products and services. The Complementary segment provides additional software and services that can be integrated with our Core solutions or used independently. The Corporate & Other segment includes hardware revenue and costs, as well as operating costs not directly attributable to the other three segments.

The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment.

An immaterial adjustment was made to reclassify revenue recognized in fiscal 2018 from the Core to the Corporate and Other Segment. For the period ended September 30, 2017, the amount reclassified totaled $738.



	Three Months Ended
	September 30, 2018
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	130,388	$	12,770	$	90,063	$	13,347		$	246,568
Processing	7,164		121,427		17,245		139			145,975
Total Revenue	137,552		134,197		107,308		13,486			392,543

Cost of Revenue	59,216		65,707		41,830		53,359			220,112
Research and Development										24,026
Selling, General, and Administrative										45,183
Total Expenses										289,321

SEGMENT INCOME	$	78,336	$	68,490	$	65,478	$	(39,873	)

OPERATING INCOME										103,222

INTEREST INCOME (EXPENSE)										144

INCOME BEFORE INCOME TAXES										$	103,366



	Three Months Ended
	September 30, 2017
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	120,477	$	9,964	$	80,297	$	16,014		$	226,752
Processing	6,868		112,930		14,731		3			134,532
Total Revenue	127,345		122,894		95,028		16,017			361,284

Cost of Revenue	55,585		57,323		39,992		51,015			203,915
Research and Development										20,929
Selling, General, and Administrative										41,088
Gain on Disposal of Businesses										(1,705		)
Total Expenses										264,227

SEGMENT INCOME	$	71,760	$	65,571	$	55,036	$	(34,998	)

OPERATING INCOME										97,057

INTEREST INCOME (EXPENSE)										(42		)

INCOME BEFORE INCOME TAXES										$	97,015

The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Operating Decision Maker.