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 three and nine months ended March 31, 2018, the amount reclassified totaled $749 and $2,231, respectively.



	Three Months Ended
	March 31, 2019
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	123,694	$	13,126	$	85,095	$	12,208		$	234,123
Processing	6,910		121,892		17,439		—			146,241
Total Revenue	130,604		135,018		102,534		12,208			380,364

Cost of Revenue	63,977		68,700		45,733		57,184			235,594
Research and Development										23,442
Selling, General, and Administrative										44,887
Total Expenses										303,923

SEGMENT INCOME	$	66,627	$	66,318	$	56,801	$	(44,976	)

OPERATING INCOME										76,441

INTEREST INCOME (EXPENSE)										(69		)

INCOME BEFORE INCOME TAXES										$	76,372



	Three Months Ended
	March 31, 2018
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	122,528	$	15,115	$	85,639	$	12,932		$	236,214
Processing	6,815		115,730		15,237		52			137,834
Total Revenue	129,343		130,845		100,876		12,984			374,048

Cost of Revenue	60,802		62,893		41,832		52,990			218,517
Research and Development										22,591
Selling, General, and Administrative										42,233
Total Expenses										283,341

SEGMENT INCOME	$	68,541	$	67,952	$	59,044	$	(40,006	)

OPERATING INCOME										90,707

INTEREST INCOME (EXPENSE)										(604		)

INCOME BEFORE INCOME TAXES										$	90,103



	Nine Months Ended
	March 31, 2019
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	376,803	$	39,004	$	261,545	$	40,662		$	718,014
Processing	21,082		368,229		51,548		309			441,168
Total Revenue	397,885		407,233		313,093		40,971			1,159,182

Cost of Revenue	183,481		199,506		131,731		168,272			682,990
Research and Development										71,458
Selling, General, and Administrative										136,866
Total Expenses										891,314

SEGMENT INCOME	$	214,404	$	207,727	$	181,362	$	(127,301	)

OPERATING INCOME										267,868

INTEREST INCOME (EXPENSE)										177

INCOME BEFORE INCOME TAXES										$	268,045



	Nine Months Ended
	March 31, 2018
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	359,619	$	34,292	$	247,264	$	44,809		$	685,984
Processing	20,365		340,828		45,294		70			406,557
Total Revenue	379,984		375,120		292,558		44,879			1,092,541

Cost of Revenue	171,751		179,520		122,033		156,228			629,532
Research and Development										65,934
Selling, General, and Administrative										126,415
Gain on Disposal of Businesses										(1,894		)
Total Expenses										819,987

SEGMENT INCOME	$	208,233	$	195,600	$	170,525	$	(111,349	)

OPERATING INCOME										272,554

INTEREST INCOME (EXPENSE)										(749		)

INCOME BEFORE INCOME TAXES										$	271,805

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.