10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ______________ to ________________

Commission file number 0-14112

JACK HENRY & ASSOCIATES, INC.

(Exact name of registrant as specified in its charter)

Delaware	43-1128385
(State or Other Jurisdiction of Incorporation)	(I.R.S Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708

(Address of Principle Executive Offices)

(Zip Code)

417-235-6652

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($0.01 par value)	JKHY	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” ”accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)  

Yes ☐ No ☒

As of April 29, 2021, the Registrant had 74,282,912 shares of Common Stock outstanding ($0.01 par value).

TABLE OF CONTENTS

		Page Reference
PART I	FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Balance Sheets as of March 31, 2021 and June 30, 2020 (Unaudited)	3
	Condensed Consolidated Statements of Income for the Three and Nine Months Ended March 31, 2021 and 2020 (Unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended March 31, 2021 and 2020 (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2021 and 2020 (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	29
ITEM 4.	Controls and Procedures	29
PART II	OTHER INFORMATION	29
ITEM 1.	Legal Proceedings	29
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
ITEM 6.	Exhibits	30
	Signatures	31

In this report, all references to "Jack Henry," “JKHY,” the “Company,” “we,” “us,” and “our,” refer to Jack Henry & Associates, Inc., and its wholly owned subsidiaries.

FORWARD LOOKING STATEMENTS

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements may appear throughout this report, including without limitation, in Management's Discussion and Analysis of Financial Condition and Results of Operations. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “seek,” “anticipate,” “estimate,” “future,” “intend,” “plan,” “strategy,” “predict,” “likely,” “should,” “will,” “would,” “could,” “can,” “may,” and similar expressions. Forward-looking statements are based only on management’s current beliefs, expectations and assumptions regarding the future of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, those discussed in our Annual Report on Form 10-K for the year ended June 30, 2020, in particular, those included in Item 1A, “Risk Factors” of such report, and those discussed in other documents we file with the Securities and Exchange Commission (“SEC”). Any forward-looking statement made in this report speaks only as of the date of this report, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

2

PART I. FINANCIAL INFORMATION

ITEM I. FINANCIAL STATEMENTS

3

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
	March 31, 2021		June 30, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	70,116	$	213,345
Receivables, net	207,736		300,945
Income tax receivable	9,511		21,051
Prepaid expenses and other	107,575		95,525
Deferred costs	47,731		38,235
Total current assets	442,669		669,101
PROPERTY AND EQUIPMENT, net	248,041		273,432
OTHER ASSETS:
Non-current deferred costs	125,036		113,525
Computer software, net of amortization	360,335		340,466
Other non-current assets	234,838		220,591
Customer relationships, net of amortization	85,254		95,108
Other intangible assets, net of amortization	27,868		29,917
Goodwill	687,458		686,334
Total other assets	1,520,789		1,485,941
Total assets	$	2,211,499	$	2,428,474
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	7,833	$	9,880
Accrued expenses	152,669		166,689
Notes payable and current maturities of long-term debt	117		115
Deferred revenues	141,110		318,161
Total current liabilities	301,729		494,845
LONG-TERM LIABILITIES:
Non-current deferred revenues	70,928		71,461
Deferred income tax liability	257,203		243,998
Debt, net of current maturities	200,120		208
Other long-term liabilities	66,076		68,274
Total long-term liabilities	594,327		383,941
Total liabilities	896,056		878,786
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	—		—
Common stock - $0.01 par value; 250,000,000 shares authorized;      103,765,778 shares issued at March 31, 2021;      103,622,563 shares issued at June 30, 2020	1,038		1,036
Additional paid-in capital	510,800		495,005
Retained earnings	2,369,656		2,235,320
Less treasury stock at cost      29,492,903 shares at March 31, 2021;      26,992,903 shares at June 30, 2020	(1,566,051)		(1,181,673)
Total stockholders' equity	1,315,443		1,549,688
Total liabilities and equity	$	2,211,499	$	2,428,474

See notes to condensed consolidated financial statements

4

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
REVENUE	$	433,776	$	429,406	$	1,307,938	$	1,286,530
EXPENSES
Cost of Revenue	267,770		258,571		788,481		753,629
Research and Development	27,395		28,308		80,233		80,086
Selling, General, and Administrative	47,408		50,589		136,801		148,985
Total Expenses	342,573		337,468		1,005,515		982,700
OPERATING INCOME	91,203		91,938		302,423		303,830
INTEREST INCOME (EXPENSE)
Interest Income	24		197		144		1,050
Interest Expense	(290)		(165)		(525)		(477)
Total Interest Income (Expense)	(266)		32		(381)		573
INCOME BEFORE INCOME TAXES	90,937		91,970		302,042		304,403
PROVISION FOR INCOME TAXES	19,528		18,115		67,435		69,080
NET INCOME	$	71,409	$	73,855	$	234,607	$	235,323
Basic earnings per share	$	0.95	$	0.96	$	3.09	$	3.06
Basic weighted average shares outstanding	75,357		76,683		76,022		76,845
Diluted earnings per share	$	0.95	$	0.96	$	3.08	$	3.06
Diluted weighted average shares outstanding	75,431		76,884		76,141		76,962

See notes to condensed consolidated financial statements

5

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In Thousands, Except Share and Per Share Data)
(Unaudited)
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
PREFERRED SHARES:	—		—		—		—
COMMON SHARES:
Shares, beginning of period	103,736,703		103,572,129		103,622,563		103,496,026
Shares issued for equity-based payment arrangements	6,479		8,616		84,893		47,098
Shares issued for Employee Stock Purchase Plan	22,596		18,899		58,322		56,520
Shares, end of period	103,765,778		103,599,644		103,765,778		103,599,644
COMMON STOCK - PAR VALUE $0.01 PER SHARE:
Balance, beginning of period	$	1,037	$	1,036	$	1,036	$	1,035
Shares issued for equity-based payment arrangements	—		—		1		—
Shares issued for Employee Stock Purchase Plan	1		—		1		1
Balance, end of period	$	1,038	$	1,036	$	1,038	$	1,036
ADDITIONAL PAID-IN CAPITAL:
Balance, beginning of period	$	503,205	$	481,005	$	495,005	$	472,029
Shares issued for equity-based payment arrangements	—		—		(1)		—
Tax withholding related to share-based compensation	(493)		(703)		(7,181)		(3,328)
Shares issued for Employee Stock Purchase Plan	2,881		2,597		8,018		7,200
Stock-based compensation expense	5,207		4,691		14,959		11,689
Balance, end of period	$	510,800	$	487,590	$	510,800	$	487,590
RETAINED EARNINGS:
Balance, beginning of period	$	2,332,509	$	2,166,039	$	2,235,320	$	2,066,073
Cumulative effect of Accounting Standards Update adoption (Note 2)	—		—		(493)		—
Net income	71,409		73,855		234,607		235,323
Dividends	(34,262)		(32,984)		(99,778)		(94,486)
Balance, end of period	$	2,369,656	$	2,206,910	$	2,369,656	$	2,206,910
TREASURY STOCK:
Balance, beginning of period	$	(1,291,572)	$	(1,161,334)	$	(1,181,673)	$	(1,110,124)
Purchase of treasury shares	(274,479)		(20,339)		(384,378)		(71,549)
Balance, end of period	$	(1,566,051)	$	(1,181,673)	$	(1,566,051)	$	(1,181,673)
TOTAL STOCKHOLDERS' EQUITY	$	1,315,443	$	1,513,863	$	1,315,443	$	1,513,863
Dividends declared per share	$	0.46	$	0.43	$	1.32	$	1.23

See notes to condensed consolidated financial statements.

6

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
	Nine Months Ended
	March 31,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	234,607	$	235,323
Adjustments to reconcile net income from operations      to net cash from operating activities:
Depreciation	39,816		38,812
Amortization	92,189		89,160
Change in deferred income taxes	13,205		9,082
Expense for stock-based compensation	14,959		11,688
(Gain)/loss on disposal of assets	(2,206)		3,095
Changes in operating assets and liabilities:
Change in receivables	92,716		99,425
Change in prepaid expenses, deferred costs and other	(34,886)		(28,396)
Change in accounts payable	(1,529)		(2,129)
Change in accrued expenses	(19,164)		(21,446)
Change in income taxes	13,629		9,905
Change in deferred revenues	(177,021)		(168,066)
Net cash from operating activities	266,315		276,453
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(2,300)		(30,376)
Capital expenditures	(14,916)		(39,563)
Proceeds from dispositions	6,187		11,106
Purchased software	(5,820)		(6,133)
Computer software developed	(95,991)		(87,284)
Purchase of investments	(13,300)		(1,150)
Net cash from investing activities	(126,140)		(153,400)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	200,000		55,000
Repayments on financing leases	(86)		(6)
Purchase of treasury stock	(384,378)		(71,549)
Dividends paid	(99,778)		(94,486)
Proceeds from issuance of common stock upon exercise of stock options	1		—
Tax withholding payments related to share-based compensation	(7,182)		(3,327)
Proceeds from sale of common stock	8,019		7,201
Net cash from financing activities	(283,404)		(107,167)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	(143,229)	$	15,886
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	213,345	$	93,628
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	70,116	$	109,514

See notes to condensed consolidated financial statements

7

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Per Share Amounts)

(Unaudited)

NOTE 1.    NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of the Company

Jack Henry & Associates, Inc. and subsidiaries ("Jack Henry," "JKHY," or the "Company") is a leading provider of technology solutions and payment processing services primarily for the financial services industry. The Company has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide by providing the conversion and implementation services for financial institutions to utilize JKHY systems, and by providing payment processing other related services. JKHY also provides continuing support and services to customers using on-premise or JKHY cloud-based systems.

Consolidation

The condensed consolidated financial statements include the accounts of JKHY and all of its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated.

Comprehensive Income

Comprehensive income for the three and nine months ended March 31, 2021 and 2020 equals the Company’s net income.

Change in Accounting Policy

The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses, ("CECL") with an adoption date of July 1, 2020 (see Note 2). As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to CECL is disclosed below. The adoption of CECL resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of July 1, 2020.

Allowance for Credit Losses

The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events.

The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended March 31, 2021:

	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Allowance for credit losses - beginning balance	$	6,830	$	6,719
Cumulative effect of accounting standards update adoption	—		493
Current provision for expected credit losses	540		1,450
Write-offs charged against allowance	(252)		(1,538)
Recoveries of amounts previously written off	—		(4)
Other	—		(2)
Allowance for credit losses - ending balance	$	7,118	$	7,118

While the novel coronavirus ("COVID-19") pandemic did not result in a significant increase in the Company’s expected credit loss allowance recorded as of March 31, 2021, the Company believes it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic could have a material impact on management’s estimates (see Use of Estimates below).

Property and Equipment

Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets.  Accumulated depreciation at March 31, 2021 totaled $428,063 and at June 30, 2020 totaled $404,388.

8

Intangible Assets

Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years.  Accumulated amortization of intangible assets totaled $889,945 and $812,856 at March 31, 2021 and June 30, 2020, respectively.

Purchase of Investments

At June 30, 2020, the Company had an investment in the preferred stock of Automated Bookkeeping, Inc ("Autobooks") of $6,000 and at March 31, 2021 of $13,250, which represented a non-controlling share of the voting equity as of that date. The total investment was recorded at cost and is included within other non-current assets on the Company's balance sheet. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing a similar or identical investment. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair value will not be estimated unless there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment.

Common Stock

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2021, there were 29,493 shares in treasury stock and the Company had the remaining authority to repurchase up to 498 additional shares. The total cost of treasury shares at March 31, 2021 was $1,566,051. During the first nine months of fiscal 2021, the Company repurchased 2,500 shares for the treasury. At June 30, 2020, there were 26,993 shares in treasury stock and the Company had authority to repurchase up to 2,998 additional shares. The total cost of treasury shares at June 30, 2020 was $1,181,673.

Income Taxes

Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of deferred benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense.

Interim Financial Statements

The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission ("SEC") and in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended June 30, 2020. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the fiscal year ended June 30, 2020, with updates to certain policies included in this Note 1.

In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly in all material respects the financial position of the Company as of March 31, 2021, the results of its operations for the three and nine months ended March 31, 2021 and 2020, changes in stockholders' equity for the three and nine months ended March 31, 2021 and 2020, and its cash flows for the nine months ended March 31, 2021 and 2020. The condensed consolidated balance sheet at June 30, 2020 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements.

The results of operations for the three and nine months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire year.

9

Use of Estimates

The extent to which the COVID-19 pandemic will directly or indirectly impact our business and financial results, including revenue, expenses, cost of revenues, research and development, and selling, general and administrative expenses, will depend on future developments that are highly uncertain, such as new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19 (including the efficacy and distribution of any vaccines), as well as the economic impact on local, regional, national and international customers and markets. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of March 31, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for credit losses, as well as the carrying value of goodwill and other long-lived assets. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended March 31, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.

NOTE 2:     RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Guidance

In January 2017, the FASB issued Accounting Standard Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted ASU No. 2017-04 on July 1, 2020 and the adoption did not have a material impact on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), or CECL, which prescribes an impairment model for most financial instruments based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial instrument. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption.

The Company adopted CECL effective July 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $493. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables as well as contract assets (see Note 1).

Not Yet Adopted

In December of 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions and simplifies other requirements of Topic 740 guidance. The ASU will be effective for the Company on July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company plans to adopt ASU 2019-12 effective July 1, 2021 and does not expect the adoption to have a material impact on its consolidated financial statements.

NOTE 3.    REVENUE AND DEFERRED COSTS

Revenue Recognition

The Company generates revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales.

10

Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Private & Public Cloud1	$	128,703	$	120,443	$	374,160	$	344,922
Product Delivery & Services	49,235		72,891		154,547		205,962
On-Premise Support2	76,701		76,870		257,802		253,332
Services & Support	254,639		270,204		786,509		804,216
Processing	179,137		159,202		521,429		482,314
Total Revenue	$	433,776	$	429,406	$	1,307,938	$	1,286,530

1 The name of this revenue stream was changed in third quarter fiscal 2021 from "outsourcing and cloud" to "private and public cloud" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

2 The name of this revenue stream was changed in third quarter fiscal 2021 from "in-house support" to "on-premise support" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers.

	March 31, 2021		June 30, 2020
Receivables, net	$	207,736	$	300,945
Contract Assets- Current	18,439		21,609
Contract Assets- Non-current	52,920		54,293
Contract Liabilities (Deferred Revenue)- Current	141,110		318,161
Contract Liabilities (Deferred Revenue)- Non-current	70,928		71,461

Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, but where invoicing is contingent upon the completion of other performance obligations or payment terms differ from the provisioning of services. The current portion of contract assets is reported within prepaid expenses and other in the condensed consolidated balance sheet, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue) primarily relate to consideration received from customers in advance of delivery of the related goods and services to the customer. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

The Company analyzes contract language to identify if a significant financing component does exist, and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction.

During the three months ended March 31, 2021 and 2020, the Company recognized revenue of $77,911 and $87,768, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. For the nine months ended March 31, 2021 and 2020, the Company recognized revenue of $207,804 and $216,684, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Amounts recognized that relate to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price re-allocations due to changes in estimates of variable consideration.

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Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2021, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $4,189,051. The Company expects to recognize approximately 26% over the next 12 months, 20% in 13-24 months, and the balance thereafter.

Contract Costs

The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and customer conversion or implementation-related costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated.

Capitalized costs totaled $299,413 and $271,010, at March 31, 2021 and June 30, 2020, respectively.

For the three months ended March 31, 2021 and 2020, amortization of deferred contract costs was $29,384 and $28,849, respectively. During the nine months ended March 31, 2021 and 2020, amortization of deferred contract costs totaled $92,004 and $88,063, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.

NOTE 4.    FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset

Fair value of financial assets included in current assets is as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
March 31, 2021
Financial Assets:
Certificates of Deposit	$	—	$	6,200	$	—	$	6,200
June 30, 2020
Financial Assets:
Certificates of Deposit	$	—	$	—	$	—	$	—

NOTE 5.    LEASES

The Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by

12

using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease.

The Company leases certain office space, data centers and equipment with remaining terms of 1 to 13 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. Variable lease costs are recognized as a variable lease expense when incurred.

At March 31, 2021 and June 30, 2020, the Company had operating lease assets of $59,132 and $63,948 and financing lease assets of $231 and $318, respectively. At March 31, 2021, total operating lease liabilities of $64,047 were comprised of current operating lease liabilities of $11,737 and noncurrent operating lease liabilities of $52,310, and total financing lease liabilities of $237 were comprised of current financing lease liabilities of $117 and noncurrent financing lease liabilities of $120. At June 30, 2020, total operating lease liabilities of $68,309 were comprised of current operating lease liabilities of $11,712 and noncurrent operating lease liabilities of $56,597, and total financing lease liabilities of $323 were comprised of current financing lease liabilities of $115 and noncurrent financing lease liabilities of $208.

Operating lease assets are included within other non-current assets and operating lease liabilities are included within accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s condensed consolidated balance sheet. Operating lease assets were recorded net of accumulated amortization of $21,388 and $13,719 as of March 31, 2021 and June 30, 2020, respectively. Financing lease assets are included within property and equipment, net and financing lease liabilities are included within notes payable (current portion) and long-term debt (noncurrent portion) in the Company’s condensed consolidated balance sheet. Financing lease assets were recorded net of accumulated amortization of $125 and $38 as of March 31, 2021 and June 30, 2020, respectively.

Operating lease costs for the three months ended March 31, 2021 and 2020 were $3,573 and $3,999, respectively. Operating lease costs for the nine months ended March 31, 2021 and 2020 were $11,312 and $12,030, respectively. Financing lease costs for the three and nine months ended March 31, 2021 were $30 and $92, respectively, and were $10 for both the three and nine months of fiscal 2020. Total operating and financing lease costs for the respective quarters included variable lease costs of approximately $1,015 and $934. Total operating and financing lease costs for the respective year-to-date periods included variable lease costs of approximately $3,205 and $2,593. Operating and financing lease expense are included within cost of services, research and development, and selling, general & administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of income.

For the nine months ended March 31, 2021 and 2020, the Company had operating cash flows for payments on operating leases of $10,121 and $11,676, and right-of-use assets obtained in exchange for operating lease liabilities of $4,746 and $2,138, respectively. Operating cash flows for interest paid on financing leases for the nine months ended March 31, 2021 and 2020 were $5 and $1, respectively.

As of March 31, 2021 and June 30, 2020, the weighted-average remaining lease term for the Company's operating leases was 82 months and 88 months and the weighted-average discount rate was 2.64% and 2.76%, respectively. As of March 31, 2021 and June 30, 2020, the weighted-average remaining lease term for the Company's financing leases was 24 months and 33 months, respectively. The weighted-average discount rate for the Company's financing leases was 2.42% as of March 31, 2021 and June 30, 2020.

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Maturity of Lease Liabilities under ASC 842

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at March 31, 2021*:

Due Dates (fiscal year)	Future Minimum Rental Payments
2021 (remaining period)	$	3,203
2022	13,320
2023	11,862
2024	9,686
2025	6,899
Thereafter	25,165
Total lease payments	$	70,135
Less: interest	(6,088)
Present value of lease liabilities	$	64,047

*Financing leases were immaterial to the quarter, so a maturity of lease liabilities table has only been included for operating leases.

Lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At March 31, 2021, there were no legally binding lease payments for leases signed but not yet commenced.

NOTE 6.    DEBT

Revolving credit facility

On February 10, 2020, the Company entered into a five-year senior, unsecured revolving credit facility. The credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $700,000. The credit facility bears interest at a variable rate equal to (a) a rate based on a eurocurrency rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the U.S. Bank prime rate ("Prime Rate") for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iv) the eurocurrency rate for a one-month interest period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit facility agreement. As of March 31, 2021, the Company was in compliance with all such covenants. The revolving credit facility terminates February 10, 2025. There was $200,000 outstanding under the credit facility at March 31, 2021 and no outstanding balance at June 30, 2020.

Other lines of credit

The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires on April 30, 2023. There was no balance outstanding at March 31, 2021 or June 30, 2020.

Interest

The Company paid interest of $525 and $275 during the nine months ended March 31, 2021 and 2020, respectively.

NOTE 7.    INCOME TAXES

Provision for income taxes increased for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 with an effective tax rate of 21.5% of income before income taxes, compared to 19.7% in the prior fiscal year quarter. The increase in the effective tax rate comparing the three month periods ended March 31, was primarily due to a change in the timing of the release of reserves for uncertain tax positions resulting from varying statute of limitation periods.

For the nine months ended March 31, 2021, provision for income taxes decreased compared to the nine months ended March 31, 2020, with an effective tax rate of 22.3% of income before income taxes, compared to 22.7% for the same period last year. The decrease to the Company’s fiscal year-to-date effective tax rate compared to the prior fiscal year period was primarily due to the difference in impact of share-based compensation that vested during each of the periods.

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The Company paid income taxes, net of refunds, of $40,440 and $49,970 in the nine months ended March 31, 2021 and 2020, respectively.

At March 31, 2021, the Company had $11,731 of gross unrecognized tax benefits before interest and penalties, $10,886 of which, if recognized, would affect our effective tax rate. At March 31, 2021, the Company had accrued interest and penalties of $2,035 related to uncertain tax positions.

The U.S. federal and state income tax returns for fiscal 2017 and all subsequent years remain subject to examination as of March 31, 2021 under statute of limitations rules. The Company believes it is reasonably possible that the liability for unrecognized tax benefits could reduce by $3,500 to $4,500 within twelve months of March 31, 2021 due to lapsing statutes of limitations and examination closures..

NOTE 8.    STOCK-BASED COMPENSATION

Our operating income for the three months ended March 31, 2021 and 2020 included $5,207 and $4,691 of stock-based compensation costs, respectively. Our operating income for the nine months ended March 31, 2021 and 2020 included $14,959 and $11,688 of stock-based compensation costs, respectively.

Stock Options

On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000. For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant.

A summary of option plan activity under this plan is as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate  Intrinsic  Value
Outstanding July 1, 2020	22	$	87.27
Granted	—	—
Forfeited	—	—
Exercised	—	—
Outstanding March 31, 2021	22	$	87.27	$	1,398
Vested and Expected to Vest March 31, 2021	22	$	87.27	$	1,398
Exercisable March 31, 2021	22	$	87.27	$	1,398

At March 31, 2021, there was no compensation cost yet to be recognized related to outstanding options. For options currently exercisable, the weighted average remaining contractual term (remaining period of exercisability) as of March 31, 2021 was 5.25 years.

Restricted Stock Unit Awards

The Company issues unit awards under the 2015 EIP. The following table summarizes non-vested restricted stock unit awards as of March 31, 2021:

Unit awards	Units	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding July 1, 2020	307	$	136.41
Granted	109	171.43
Vested	(113)	107.34
Forfeited	(1)	139.17
Outstanding March 31, 2021	302	$	159.83	$	45,817

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The 109 unit awards granted in fiscal 2021 had service requirements and performance targets, with 74 having only service requirements. Those 74 unit awards were valued at the weighted-average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. The remaining 35 unit awards granted in fiscal 2021 had performance targets along with service requirements, all of which were valued using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design to value the unit awards as of the grant date. Per the Company's award vesting and settlement provisions, approximately half of the awards that utilize a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return (TSR) in comparison to the compensation peer group made up of participants approved by the Compensation Committee of the Company's Board of Directors for fiscal year 2021, and the other half of the awards utilizing a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return in comparison to the Standard & Poor's 1500 Information Technology Index (S&P 1500 IT Index) participants. The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows.

	Compensation Peer Group		S&P 1500 IT Index
Volatility	25.17	%	25.17	%
Risk free interest rate	0.11	%	0.11	%
Annual dividend based on most recent quarterly dividend	1.72		1.72
Beginning TSR	37	%	30	%

At March 31, 2021, there was $23,718 of compensation expense, excluding forfeitures, that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.40 years.

NOTE 9.    EARNINGS PER SHARE

The following table reflects the reconciliation between basic and diluted earnings per share.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Net Income	$	71,409	$	73,855	$	234,607	$	235,323
Common share information:
Weighted average shares outstanding for basic earnings per share	75,357		76,683		76,022		76,845
Dilutive effect of stock options and restricted stock	74		201		119		117
Weighted average shares outstanding for diluted earnings per share	75,431		76,884		76,141		76,962
Basic earnings per share	$	0.95	$	0.96	$	3.09	$	3.06
Diluted earnings per share	$	0.95	$	0.96	$	3.08	$	3.06

Per share information is based on the weighted average number of common shares outstanding for the three and nine months ended March 31, 2021 and 2020. Stock options and restricted stock units have been included in the calculation of earnings per share to the extent they are dilutive. There were no anti-dilutive stock options or restricted stock units excluded for the quarter ended March 31, 2021 and 3 were excluded for the quarter ended March 31, 2020. There were no anti-dilutive stock options or restricted stock units excluded for the nine months ended March 31, 2021 and 48 were excluded for the nine months ended March 31, 2020.

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NOTE 10.    BUSINESS ACQUISITIONS

Geezeo

On July 1, 2019, the Company acquired all of the equity interest of DebtFolio, Inc. ("Geezeo") for $37,776 paid in cash. The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by cash generated from operations. Geezeo is a Boston-based provider of retail and business digital financial management solutions.

Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below:

Current assets	$	8,925
Long-term assets	397
Identifiable intangible assets	19,114
Deferred income tax liability	(2,593)
Total other liabilities assumed	(7,457)
Total identifiable net assets	18,386
Goodwill	19,390
Net assets acquired	$	37,776

The goodwill of $19,390 arising from this acquisition consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of Geezeo, together with the value of Geezeo's assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is not deductible for income tax purposes.

Identifiable intangible assets from this acquisition consist of customer relationships of $10,522, computer software of $5,791, and other intangible assets of $2,801. The amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years for each.

Current assets were inclusive of cash acquired of $7,400. The fair value of current assets acquired included accounts receivable of $1,373, none of which were expected to be uncollectible.

Costs incurred related to the acquisition of Geezeo in fiscal 2020 totaled $30 for professional services, travel, and other fees, and were expensed as incurred and reported within cost of revenue and selling, general, and administrative expense.

The Company's condensed consolidated statements of income for the three months ended March 31, 2021 included revenue of $3,328 and after-tax net income of $1,190 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the three months ended March 31, 2020 included revenue of $2,356 and after-tax net income of $345 resulting from Geezeo's operations.

The Company's condensed consolidated statements of income for the nine months ended March 31, 2021 included revenue of $9,814 and after-tax net income of $3,413 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the nine months ended March 31, 2020 included revenue of $6,787 and after-tax net income of $523 resulting from Geezeo's operations.

The accompanying condensed consolidated statements of income for the three and nine months ended March 31, 2021 and 2020 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to the current and prior periods of our condensed consolidated financial statements and pro forma financial information has not been provided.

NOTE 11.    REPORTABLE SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for on-premise installations or JKHY cloud-based 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, Automated Clearing House ("ACH") origination and remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software and services that

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can be integrated with our Core solutions and many can be 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.

During the second quarter of fiscal 2021, Jack Henry's call center was consolidated into the Complementary segment. As a result of this consolidation, an immaterial adjustment was made during the third quarter of fiscal 2021 to reclassify revenue and related costs recognized during the three and nine months ended March 31, 2020 from the Core to the Complementary segment. The revenue amounts reclassified were $5,320 for the three months ended March 31, 2020, and $14,795 for the nine months ended March 31, 2020. The cost of revenue amounts reclassified were $3,442 for the three months ended March 31, 2020, and $8,992 for the nine months ended March 31, 2020. An additional immaterial adjustment was made after the quarter ended December 31, 2019 to reclassify cost of revenue recognized in the year-to-date period of fiscal 2020 from the Corporate & Other to the Payments segment to be consistent with the current allocation of cost of revenue by segment. There was no amount reclassified for the three months ended March 31, 2020 and $131 for the nine months ended March 31, 2020.

	Three Months Ended
	March 31, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	126,400	$	15,978	$	100,421	$	11,840	$	254,639
Processing	8,749		144,863		25,010		515		179,137
Total Revenue	135,149		160,841		125,431		12,355		433,776
Cost of Revenue	63,259		87,628		54,207		62,676		267,770
Research and Development									27,395
Selling, General, and Administrative									47,408
Total Expenses									342,573
SEGMENT INCOME	$	71,890	$	73,213	$	71,224	$	(50,321)
OPERATING INCOME									91,203
INTEREST INCOME (EXPENSE)									(266)
INCOME BEFORE INCOME TAXES									$	90,937

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	Three Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	133,362	$	19,506	$	103,680	$	13,656	$	270,204
Processing	7,758		130,854		20,304		286		159,202
Total Revenue	141,120		150,360		123,984		13,942		429,406
Cost of Revenue	62,699		80,836		52,133		62,903		258,571
Research and Development									28,308
Selling, General, and Administrative									50,589
Total Expenses									337,468
SEGMENT INCOME	$	78,421	$	69,524	$	71,851	$	(48,961)
OPERATING INCOME									91,938
INTEREST INCOME (EXPENSE)									32
INCOME BEFORE INCOME TAXES									$	91,970

	Nine Months Ended
	March 31, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	397,744		47,089		307,799		33,877		786,509
Processing	25,509		425,667		69,394		859		521,429
Total Revenue	423,253		472,756		377,193		34,736		1,307,938
Cost of Revenue	185,668		260,411		158,638		183,764		788,481
Research and Development									80,233
Selling, General, and Administrative									136,801
Total Expenses									1,005,515
SEGMENT INCOME	$	237,585	$	212,345	$	218,555	$	(149,028)
OPERATING INCOME									302,423
INTEREST INCOME (EXPENSE)									(381)
INCOME BEFORE INCOME TAXES									$	302,042

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	Nine Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	402,759	$	51,643	$	306,083	$	43,731	$	804,216
Processing	23,150		400,508		58,054		602		482,314
Total Revenue	425,909		452,151		364,137		44,333		1,286,530
Cost of Revenue	181,697		236,725		152,376		182,831		753,629
Research and Development									80,086
Selling, General, and Administrative									148,985
Total Expenses									982,700
SEGMENT INCOME	$	244,212	$	215,426	$	211,761	$	(138,498)
OPERATING INCOME									303,830
INTEREST INCOME (EXPENSE)									573
INCOME BEFORE INCOME TAXES									$	304,403

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

NOTE 12: SUBSEQUENT EVENTS

None.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the accompanying notes to the condensed consolidated financial statements included in this Form 10-Q for the quarter ended March 31, 2021.

OVERVIEW

Jack Henry & Associates, Inc. ("JKHY") is a leading provider of technology solutions and payment processing services primarily for financial services organizations. Its solutions are marketed and supported through three primary brands. Jack Henry Banking® provides innovative solutions to community and regional banks. Symitar® provides industry-leading solutions to credit unions of all sizes. ProfitStars® offers highly specialized solutions to financial institutions of every asset size, as well as diverse corporate entities outside of the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. JKHY's integrated solutions are generally available for on-premise installation and delivery in our JKHY cloud.

Our two primary revenue streams are "services and support" and "processing." Services and support includes: "private and public cloud" fees (formerly known as "outsourcing and cloud" fees - see Note 3) that predominantly have contract terms of five years or longer at inception; "product delivery and services" revenue, which includes revenue from the sales of licenses, implementation services, deconversion fees, consulting, and hardware; and "on-premise support" revenue (formerly known as "in-house support" revenue - see Note 3), composed of maintenance fees which primarily contain annual contract terms. Processing revenue includes: "remittance" revenue from payment processing, remote capture, and ACH transactions; "card" fees, including card transaction processing and monthly fees; and "transaction and digital" revenue, which includes transaction and mobile processing fees. We continually seek opportunities to increase revenue while at the same time containing costs to expand margins.

All amounts in the following discussion are in thousands, except per share amounts.

COVID-19 Impact and Response

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic and the President of the United States declared the outbreak as a national emergency. As COVID-19 rapidly spread, federal, state and local governments responded by imposing varying degrees of restrictions, including widespread “stay-at-home” orders, social distancing requirements, travel limitations, quarantines, and forced closures or limitations on operations of non-essential businesses. Over the course of the pandemic, these restrictions have been modified, lifted, and in some cases re-imposed in various locations. The existence, diversity, and constantly changing nature of these restrictions have resulted in significant economic disruptions and uncertainty.

The health, safety, and well-being of our employees and customers is of paramount importance to us. In March 2020, we established an internal task force composed of executive officers and other members of management to frequently assess updates to the COVID-19 situation and recommend Company actions. We offered remote working as a recommended option to employees whose job duties allow them to work off-site. This recommended remote working option is currently extended until at least July 1, 2021, and our internal task force will continue to evaluate recommending further extensions. Based on guidance from the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the Company was designated as essential critical infrastructure because of our support of the financial services industry. As of May 1, 2021, the majority of our employees were continuing to work remotely. Our internal task force considers federal, state and local guidance, as well as employee-specific and facility-specific factors, when recommending Company actions. At such time that our internal task force recommends that our remote employees begin to return to our facilities, we have prepared procedures to assist with a safe, gradual and deliberate approach, including a return-to-office training, enhanced sanitation procedures and face mask requirements, which are currently being utilized by our employees who are required to be on-site to perform their required job functions.

We have suspended all non-essential business travel until at least July 1, 2021, and our internal task force will continue to evaluate the need for further extensions. We have put additional safety precautions into place for travel that is essential. We have also updated the health benefits available to our employees by waiving out-of-pocket expenses related to testing and treatment of COVID-19.

Customers

We are working closely with our customers who are scheduled for on-site visits to ensure their needs are met while taking necessary safety precautions when our employees are required to be at a customer site. Delays of customer system installations due to COVID-19 have been limited, and we have developed processes to handle remote

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installations when available. We expect these processes to provide flexibility and value both during and after the COVID-19 pandemic. We did experience delays related to continuing customer migrations to our new card processing platform. However, we successfully completed all the migrations according to a revised schedule by March 31, 2021. We continue to work with our customers to support them during this difficult time, and, to that end, have waived certain late fees in connection with our products and services. We have also enhanced our lending service offerings to support the Paycheck Protection Program (PPP) that was introduced by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Even though a substantial portion of our workforce has worked remotely during the outbreak and business travel has been curtailed, we have not yet experienced significant disruption to our operations. We believe our technological capabilities are well positioned to allow our employees to work remotely for the foreseeable future without materially impacting our business.

Financial impact

We have seen delays in certain product installations due to COVID-19 with the associated revenue pushed from the current period to future periods. These headwinds may continue to impact our license, hardware, installation and pass-through revenues into fiscal 2022. Despite the changes and restrictions caused by COVID-19, the overall financial and operational impact on our business has been limited and our liquidity, balance sheet, and business trends remain strong. We experienced positive operating cash flows during the first nine months of fiscal 2021, and we do not expect that to change in the near term. However, we are unable to accurately predict the future impact of COVID-19 due to a number of uncertainties, including further government actions; the duration, severity and recurrence of the outbreak; the speed and effectiveness of vaccine and treatment developments; the speed of economic recovery; the potential impact to our customers, vendors, and employees; and how the potential impact might affect future customer services, processing and installation-related revenue, and processes and efficiencies within the Company directly or indirectly impacting financial results. We will continue to monitor COVID-19 and its possible impact on the Company and to take steps necessary to protect the health and safety of our employees and customers.

RESULTS OF OPERATIONS

For the third quarter of fiscal 2021, total revenue increased 1%, or $4,370, compared to the same quarter in fiscal 2020. Reducing total revenue for the effects of deconversion fees of $4,367 for the current fiscal year quarter and $22,781 for the prior fiscal year quarter and for the effects of acquisitions and divestitures of $1,241 for the prior fiscal year quarter, results in an increase of 6% for the quarter compared to the same quarter a year ago. This total revenue increase was primarily driven by growth in card processing, data processing and hosting fee, and transaction and digital processing revenues partially offset by a decrease in hardware revenue.

Operating expenses increased 2% for the third quarter of fiscal 2021 compared to the third quarter of fiscal 2020, primarily due to increased direct costs related to our card payment processing platform and Jack Henry digital, as well as higher licenses and fees partially offset by lower research and development costs due to more of those costs being capitalized during the quarter, the change in gain/loss on disposal of assets, and travel expense savings due to COVID-19 travel limitations (see "COVID-19 Impact and Response" section above) that included savings generated by holding virtual events.

Operating income decreased 1% for the third quarter of fiscal 2021 compared to the third quarter of fiscal 2020. Reducing operating income for the effects of deconversion fees of $3,967 for the current fiscal quarter and $21,512 for the prior fiscal year quarter and increasing operating income for the effects of acquisitions, divestitures, and gain/loss, of $46 for the current fiscal year quarter and $2,838 for the prior fiscal year quarter, results in a 19% increase for the third quarter of fiscal 2021 compared to the same quarter a year ago. This increase in operating income was primarily driven by increased revenue growth partially offset by increased operating expenses detailed above.

The provision for income taxes increased 8% for the third quarter of fiscal 2021 compared to the prior fiscal year third quarter. The effective tax rate for the third quarter of fiscal 2021 was 21.5% compared to 19.7% for the same quarter a year ago. The increase in the effective tax rate was primarily due to a change in the timing of the release of reserves for uncertain tax positions resulting from varying statute of limitation periods.

Due to the above changes, net income decreased 3% for the third quarter of fiscal 2021 compared to the third quarter of fiscal 2020.

For the nine months ended March 31, 2021, total revenue increased 2%, or $21,408, over the nine months ended March 31, 2020. Reducing total revenue for the effects of deconversion fees of $12,405 for the current fiscal year period and $45,384 for the prior fiscal year period and for the effects of acquisitions and divestitures from the prior fiscal year period of $2,408, results in a 5% increase for the period compared to the same period a year ago. This total revenue increase was primarily driven by increased data processing and hosting fee, card processing, Jack Henry digital, and remittance revenues.

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Operating expenses for the nine months ended March 31, 2021 increased 2% compared to the equivalent period in the prior fiscal year, primarily due to increased direct costs, operating licenses and fees, and higher personnel costs partially offset by travel expense savings due to COVID-19 travel limitations (see "COVID-19 Impact and Response" section above), that included savings generated by holding virtual events, and lower costs related to hardware and the change in gain/loss on disposal of assets. The increased direct costs were primarily related to our card payment processing platform and Jack Henry digital. Higher personnel costs were primarily related to a headcount increase of 2% at March 31, 2021 compared to March 31, 2020.

Operating income remained consistent for the nine months ended March 31, 2021 compared to the nine months ended March 31, 2020. Reducing operating income for the effects of deconversion fees of $11,105 for the current fiscal year period and $41,960 for the prior fiscal year period and for the effects of acquisitions, divestitures, and gain/loss, of $1,994 for the current fiscal year period, and increasing operating income for the effects of acquisitions, divestitures, and gain/loss of $2,561 for the prior fiscal year period, results in a 9% increase for the nine months ended March 31, 2021 compared to the same period a year ago. This increase was primarily driven by the revenue growth described above partially offset by increased operating expenses detailed above.

The provision for income taxes decreased 2% for the nine months ended March 31, 2021 compared to the prior fiscal year-to-date period. The effective tax rate for the nine months ended March 31, 2021 was 22.3% compared to 22.7% for the prior year fiscal period. The decrease was primarily driven by the difference in impact of share-based compensation that vested during each of the periods.

The result of the above changes led to net income that remained consistent for the nine months ended March 31, 2021 compared to the same period in the prior fiscal year.

We move into the fourth quarter of fiscal 2021 with optimism following strong performance in the third quarter, but with limited visibility of the future impact of the COVID-19 pandemic. Significant portions of our business continue to come from recurring revenues and our sales pipeline also remains encouraging. Our customers continue to face regulatory and operational challenges which our products and services address, and in these uncertain times, we believe they have an even greater need for our solutions that directly address institutional profitability, efficiency, and security. Our strong balance sheet, access to extensive lines of credit, the continued strength of our existing lines of revenue, and an unwavering commitment to superior customer service should position us well to address current and future opportunities.

A detailed discussion of the major components of the results of operations for the three and nine months ended March 31, 2021 follows. Discussions compare the current fiscal year's three and nine months ended March 31, 2021 to the prior year's three and nine months ended March 31, 2020.

REVENUE

Services and Support	Three Months Ended March 31,						% Change		Nine Months Ended March 31,						% Change
	2021			2020					2021			2020
Services and Support	$	254,639		$	270,204		(6)	%	$	786,509		$	804,216		(2)	%
Percentage of total revenue	59		%	63		%			60		%	63		%

Services and support revenue decreased 6% for the third quarter of fiscal 2021 compared to the same quarter a year ago primarily due to a deconversion fee revenue reduction of $18,414, as fewer customers were lost to mergers with non-Jack Henry customers. Reducing services and support revenue for deconversion fee revenue from each quarter, which was $4,367 for the current fiscal year quarter and $22,781 for the prior fiscal year quarter and for revenue from acquisitions and divestitures of $1,240 for the prior fiscal year quarter, results in growth of 2% quarter over quarter. This increase was primarily driven by increased data processing and hosting fee revenue reflecting a continuing shift of customers to our term license model.

For the nine months ended March 31, 2021, services and support revenue decreased 2% compared to the nine months ended March 31, 2020 primarily due to a deconversion fee revenue reduction of $32,979, as fewer customers were lost to mergers with non-Jack Henry customers. Reducing services and support revenue for deconversion fee revenue from each period presented, which was $12,405 for the current fiscal year period and $45,384 for the prior fiscal year period and for revenue from acquisitions and divestitures of $2,407 from the prior fiscal year period, results in growth of 2% period over period. This increase was primarily driven by growth in data processing and hosting fees and software usage revenues partially offset by lower hardware revenue and decreased pass through revenue related to billable travel limitations due to COVID-19 (see "COVID-19 Impact and Response" section above).

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Processing	Three Months Ended March 31,						% Change		Nine Months Ended March 31,						% Change
	2021			2020					2021			2020
Processing	$	179,137		$	159,202		13	%	$	521,429		$	482,314		8	%
Percentage of total revenue	41		%	37		%			40		%	37		%

Processing revenue increased 13% for the third quarter of fiscal 2021 compared to the same quarter last fiscal year. The increase was primarily driven by higher card processing and Jack Henry digital revenue due to expanding volumes, complemented by growth in the other processing revenue components, quarter over quarter.

Each processing revenue component also experienced volume growth in the fiscal year-to-date period, leading to an increase in processing revenue of 8% for the nine months ended March 31, 2021 compared to the nine months ended March 31, 2020.

OPERATING EXPENSES

Cost of Revenue	Three Months Ended March 31,						% Change		Nine Months Ended March 31,						% Change
	2021			2020					2021			2020
Cost of Revenue	$	267,770		$	258,571		4	%	$	788,481		$	753,629		5	%
Percentage of total revenue	62		%	60		%			60		%	59		%

Cost of revenue for the third quarter of fiscal 2021 increased 4% over the prior fiscal year third quarter and increased as a percentage of total revenue. Reducing cost of revenue for the effects of deconversion fees from each quarter, which were $351 for the current fiscal year quarter and $670 for the prior fiscal year quarter and for the effects of acquisitions, divestitures, and gain/loss of $29 from the current fiscal year quarter and $726 from the prior fiscal year quarter, results in a 4% increase quarter over quarter. This increase was primarily due to higher costs associated with our card processing platform, operating licenses and fees, and personnel costs related to increased headcount at March 31, 2021 compared to a year ago due to organic growth within our product lines. The increase in costs was partially offset by travel expense savings as a result of COVID-19 travel limitations (see "COVID-19 Impact and Response" section above), which included savings generated by holding virtual events. Cost of revenue increased 2% compared to the prior fiscal year quarter as a percentage of total revenue.

For the fiscal year-to-date period, cost of revenue increased 5% over the same prior fiscal year-to-date period and increased as a percentage of revenue. Reducing cost of revenue for the effects of deconversion fees from each period, which were $1,000 for the current fiscal year period and $2,601 for the prior fiscal year period and for the effects of acquisitions, divestitures, and gain/loss of $29 from the current fiscal year period and $1,446 from the prior fiscal year period, results in a 5% increase period over period. This increase in costs was primarily due to higher costs associated with our card processing platform and operating licenses and fees. Cost of revenue increased 1% compared to the prior fiscal year period as a percentage of total revenue.

Research and Development	Three Months Ended March 31,						% Change		Nine Months Ended March 31,						% Change
	2021			2020					2021			2020
Research and Development	$	27,395		$	28,308		(3)	%	$	80,233		$	80,086		—	%
Percentage of total revenue	6		%	7		%			6		%	6		%

Research and development expense decreased 3% for the third quarter of fiscal 2021 over the prior fiscal year third quarter. The decrease was primarily due to higher capitalized research and development costs partially offset by an increase in personnel costs, quarter over quarter. Research and development expense for the quarter decreased 1% compared to the prior fiscal year quarter as a percentage of total revenue.

For the fiscal year-to-date period, research and development expense remained consistent over the prior fiscal year-to-date period. The consistency of this expense category for the fiscal year-to-date period reflected our continuing commitment to the development of strategic products. Research and development expense for the nine months ended March 31, 2021 also remained consistent with the same period a year ago as a percentage of total revenue.

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Selling, General, and Administrative	Three Months Ended March 31,						% Change		Nine Months Ended March 31,						% Change
	2021			2020					2021			2020
Selling, General, and Administrative	$	47,408		$	50,589		(6)	%	$	136,801		$	148,985		(8)	%
Percentage of total revenue	11		%	12		%			10		%	12		%

Selling, general, and administrative expense decreased 6% in the third quarter of fiscal 2021 over the same quarter in the prior fiscal year. Reducing selling, general, and administrative expense for the effects of deconversion fees from each quarter, which were $49 for the current fiscal year quarter and $599 for the prior fiscal year quarter and for the effects of acquisitions, divestitures, and gain/loss of $3,196 for the prior fiscal year quarter, results in a 1% increase quarter over quarter. This increase was primarily due to higher personnel costs for the quarter and were partially offset by travel expense savings as a result of COVID-19 travel limitations (see "COVID-19 Impact and Response" section above). Selling, general, and administrative expense decreased 1% as a percentage of total revenue this fiscal year quarter versus the prior fiscal year quarter.

For the fiscal year-to-date period, selling, general, and administrative expense decreased 8% over the prior fiscal year-to-date period. Reducing selling, general, and administrative expense for the effects of deconversion fees from each period, which were $300 for the current fiscal year period and $823 for the prior fiscal year period and for the effects of acquisitions, divestitures, and gain/loss of $3,228 for the prior fiscal year period, and increasing selling, general, and administrative expense for the effects of acquisitions, divestitures, and gain/loss of $2,040 for the current fiscal year period, results in a 4% decrease period over period. This decrease was primarily due to travel expense savings as a result of COVID-19 travel limitations (see "COVID-19 Impact and Response" section above) partially offset by higher personnel costs. COVID-19 related savings included our national sales meeting, Jack Henry Annual Conference, and Symitar Education Conference being held virtually during the current year-to-date period. Selling, general, and administrative expense decreased 2% as a percentage of total revenue this period versus the prior-year period.

INTEREST INCOME (EXPENSE)	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2021		2020				2021		2020
Interest Income	$	24	$	197	(88)	%	$	144	$	1,050	(86)	%
Interest Expense	$	(290)	$	(165)	76	%	$	(525)	$	(477)	10	%

Interest income fluctuated due to changes in invested balances and yields on invested balances during the third quarter and year-to-date period of fiscal 2021 compared to the same periods a year ago. Interest expense decreased when compared to the prior fiscal year quarter and fiscal year-to-date period due to interest rate fluctuations, length of borrowing time, and amounts borrowed. There was a $200,000 outstanding balance under the credit facility at March 31, 2021 and $55,000 outstanding balance at March 31, 2020.

PROVISION FOR INCOME TAXES	Three Months Ended March 31,						% Change		Nine Months Ended March 31,						% Change
	2021			2020					2021			2020
Provision for Income Taxes	$	19,528		$	18,115		8	%	$	67,435		$	69,080		(2)	%
Effective Rate	21.5		%	19.7		%			22.3		%	22.7		%

The increase in effective tax rate for the third quarter of fiscal 2021 compared to the same quarter a year ago was primarily due to a change in the timing of the release of reserves for uncertain tax positions resulting from varying statute of limitation periods. The decrease in effective tax rate for the nine months ended March 31, 2021 compared to the same period in the prior fiscal year was primarily due to the difference in impact of share-based compensation that vested during each of the periods.

NET INCOME

Net income decreased 3% to $71,409, or $0.95 per diluted share, for the third quarter of fiscal 2021 compared to $73,855, or $0.96 per diluted share in the same quarter of fiscal 2020.

Net income remained consistent at $234,607, or $3.08 per diluted share, for the nine months ended March 31, 2021, compared to $235,323, or $3.06 per diluted share, for the nine months ended March 31, 2020, resulting in a 1% increase in diluted earnings per share.

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REPORTABLE SEGMENT DISCUSSION

The Company is a leading provider of technology solutions and payment processing services primarily for financial services organizations.

The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and 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 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, hosted processing platforms, and services, including call center support, and network security management, consulting, and monitoring, that can be integrated with our core solutions and many can be used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating costs not directly attributable to the other three segments.

Core
	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2021		2020				2021		2020
Revenue	$	135,149	$	141,120	(4)	%	$	423,253	$	425,909	(1)	%
Cost of Revenue	$	63,259	$	62,699	1	%	$	185,668	$	181,697	2	%

Revenue in the Core segment decreased 4% and cost of revenue increased 1% for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Reducing Core revenue for deconversion fee revenue in both periods, which totaled $1,362 for the third quarter of fiscal 2021 and $10,603 for the third quarter of fiscal 2020 and for revenue from acquisitions and divestitures of $1,241 from the prior year quarter, results in a 3% increase quarter over quarter. This increase in Core revenue over the prior fiscal year quarter was primarily driven by the growth in data processing and hosting fee revenue. Cost of revenue increased 2% as a percentage of revenue for the third quarter of fiscal 2021 compared to the same quarter of fiscal 2020.

For the nine months ended March 31, 2021, revenue in the Core segment decreased 1% compared to the prior fiscal year-to-date period. Reducing Core revenue for deconversion fee revenue in both periods, which totaled $4,297 for the year-to-date period of fiscal 2021 and $21,218 for the year-to-date period of fiscal 2020 and for revenue from acquisitions and divestitures of $2,408 from the prior year period, results in a 4% increase period over period. This increase in Core revenue over the prior fiscal year-to-date period was primarily driven by the growth in data processing and hosting fees as well as increased software usage fee revenue. Cost of revenue increased 2% period over period primarily due to increased direct support costs. Cost of revenue increased 1% as a percentage of revenue for year-to-date fiscal 2021 compared to the same period of fiscal 2020.

Payments
	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2021		2020				2021		2020
Revenue	$	160,841	$	150,360	7	%	$	472,756	$	452,151	5	%
Cost of Revenue	$	87,628	$	80,836	8	%	$	260,411	$	236,725	10	%

Revenue in the Payments segment increased 7% for the third quarter of fiscal 2021 compared to the equivalent quarter of the prior fiscal year. Reducing Payments revenue for deconversion fee revenue in both periods, which totaled $1,911 for the third quarter of fiscal 2021 and $6,442 for the third quarter of fiscal 2020, results in a 10% increase quarter over quarter. This Payments revenue growth was primarily due to increased card and remittance fee revenue within processing. Cost of revenue increased 8% quarter over quarter primarily due to increased costs related to our credit and debit card processing platform. Cost of revenue as a percentage of revenue increased 1% for the third quarter of fiscal 2021 compared to the same quarter of fiscal 2020.

For the nine months ended March 31, 2021, revenue in the Payments segment increased 5% compared to the same period last fiscal year. Reducing Payments revenue for deconversion fee revenue in both periods, which totaled $4,433 for year-to-date fiscal 2021 and $13,478 for year-to-date fiscal 2020, results in a 7% increase period over period. This Payments revenue growth was primarily due to increased card and remittance revenue within processing. Cost of revenue increased 10% period over period primarily due to the same factors as the quarter

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increase. Cost of revenue as a percentage of revenue increased 3% for year-to-date fiscal 2021 compared to the same period of fiscal 2020.

Complementary
	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2021		2020				2021		2020
Revenue	$	125,431	$	123,984	1	%	$	377,193	$	364,137	4	%
Cost of Revenue	$	54,207	$	52,133	4	%	$	158,638	$	152,376	4	%

Revenue in the Complementary segment increased 1% for the third quarter of fiscal 2021 compared to the equivalent quarter of the prior fiscal year. Reducing Complementary revenue for deconversion fee revenue in both periods, which totaled $1,080 for the third quarter of fiscal 2021 and $5,462 for the third quarter of fiscal 2020, results in a 5% increase quarter over quarter. This Complementary revenue growth was primarily driven by increased Jack Henry digital revenue and higher hosting fee revenue. Cost of revenue increased 4% quarter over quarter primarily due to increased personnel costs, amortization, and direct support costs. Cost of revenue as a percentage of revenue increased 1% for the third quarter of fiscal 2021 compared to the same quarter of fiscal 2020.

For the nine months ended March 31, 2021, revenue in the Complementary segment increased 4% compared to the same period last fiscal year. Reducing Complementary revenue for deconversion fee revenue in both periods, which totaled $3,588 for year-to-date fiscal 2021 and $10,364 for year-to-date fiscal 2020, results in a 6% increase period over period. This increase in Complementary revenue was primarily driven by increased Jack Henry digital revenue and higher hosting fee revenue. Cost of revenue increased 4% period over period primarily due to the same factors as the quarter increase. Cost of revenue as a percentage of revenue remained consistent for year-to-date fiscal 2021 compared to the same period of fiscal 2020.

Corporate and Other
	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2021		2020				2021		2020
Revenue	$	12,355	$	13,942	(11)	%	$	34,736	$	44,333	(22)	%
Cost of Revenue	$	62,676	$	62,903	—	%	$	183,764	$	182,831	1	%

Revenue in the Corporate and Other segment decreased 11% for the third quarter of fiscal 2021 compared to the equivalent quarter of the prior fiscal year, and decreased 22% for the fiscal year-to-date period compared to the prior fiscal year-to-date period. The decrease quarter over quarter and period over period was primarily due to lower hardware revenue. Revenue classified in the Corporate and Other segment includes revenue from other products and services and hardware not specifically attributed to any of the other three segments.

Cost of revenue for the Corporate and Other segment includes operating cost not directly attributable to any of the other three segments. The cost of revenue in the third quarter of fiscal 2021 remained consistent when compared to the prior fiscal year quarter. The increased cost of revenue for the fiscal 2021 year-to-date period of 1% was primarily due to higher other operating expenses partially offset by lower hardware costs.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash and cash equivalents decreased to $70,116 at March 31, 2021 from $213,345 at June 30, 2020.

The following table summarizes net cash from operating activities in the statement of cash flows:

	Nine Months Ended
	March 31,
	2021		2020
Net income	$	234,607	$	235,323
Non-cash expenses	157,963		151,837
Change in receivables	92,716		99,425
Change in deferred revenue	(177,021)		(168,066)
Change in other assets and liabilities	(41,950)		(42,066)
Net cash provided by operating activities	$	266,315	$	276,453

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Cash provided by operating activities for the first nine months of fiscal 2021 decreased 4% compared to the same period last year. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, and for capital expenditures.

Cash used in investing activities for the first nine months of fiscal 2021 totaled $126,140 and included: $95,991 for the ongoing enhancements and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $14,916; the purchase of investments, including Autobooks of $7,250 and certificates of deposit of $6,200; $5,820 for the purchase and development of internal use software; and $2,300 for an asset acquisition during the third quarter. This was partially offset by proceeds from dispositions of $6,187. Cash used in investing activities for the first nine months of fiscal 2020 totaled $153,400 and included $87,284 for the development of software; capital expenditures of $39,563; $30,376, net of cash acquired, for the acquisition of Geezeo; $6,133 for the purchase and development of internal use software; and $1,150 for the purchase of investments. This was partially offset by proceeds from dispositions of $11,106.

Financing activities used cash of $283,404 for the first nine months of fiscal 2021, including $384,378 for the purchase of treasury shares, dividends paid to stockholders of $99,778, and $86 for payments on financing leases. This was partially offset by borrowings on credit facilities of $200,000 and $838 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation. Financing activities used cash of $107,167 in the first nine months of fiscal 2020 including $94,486 for the payment of dividends, $71,549 for the purchase of treasury shares, and $6 for payments on financing leases. This was partially offset by borrowings on credit facilities of $55,000 and $3,874 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation.

Capital Requirements and Resources

The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $14,916 and $39,563 for the nine months ended March 31, 2021 and March 31, 2020, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2021 are not expected to exceed $44,000 and will be funded from cash generated by operations.

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line of credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2021, there were 29,493 shares in treasury stock and the Company had the remaining authority to repurchase up to 498 additional shares. The total cost of treasury shares at March 31, 2021 was $1,566,051. During the first nine months of fiscal 2021, the Company repurchased 2,500 treasury shares. At June 30, 2020, there were 26,993 shares in treasury stock and the Company had authority to repurchase up to 2,998 additional shares.

Revolving credit facility

On February 10, 2020, the Company entered into a five-year senior, unsecured revolving credit facility. The credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $700,000. The credit facility bears interest at a variable rate equal to (a) a rate based on a eurocurrency rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iv) the eurocurrency rate for a one-month interest period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit facility agreement. As of March 31, 2021, the Company was in compliance with all such covenants. The revolving credit facility terminates February 10, 2025. There was $200,000 outstanding balance under the credit facility at March 31, 2021 and no outstanding balance at June 30, 2020.

Other lines of credit

The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line was renewed in March 2021 and expires on April 30, 2023. At March 31, 2021 and June 30, 2020, no amount was outstanding.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Dollar amounts in this item are in thousands.

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. We are currently exposed to credit risk on credit extended to customers and at times are exposed to interest rate risk on outstanding debt. We do not currently use any derivative financial instruments. We actively monitor these risks through a variety of controlled procedures involving senior management.

Based on the controls in place and the credit worthiness of the customer base, we believe the credit risk associated with the extension of credit to our customers will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

We have $200,000 outstanding debt with variable interest rates as of March 31, 2021 and a 1% increase in our borrowing rate would increase our annual interest expense by $2,000.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of our management, including the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation, the CEO and CFO concluded that our disclosure controls and procedures are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and accumulated and communicated to the Company's management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the fiscal quarter ended March 31, 2021, there were no changes in internal control over financial reporting which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

We are subject to various routine legal proceedings and claims arising in the ordinary course of our business. In the opinion of management, any liabilities resulting from current lawsuits are not expected, either individually or in the aggregate, to have a material adverse effect on our consolidated financial statements. In accordance with U.S. GAAP, we record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These liabilities are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case or proceeding.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following shares of the Company were repurchased during the quarter ended March 31, 2021:

	Total Number of Shares Purchased (1)	Average Price of Share		Total Number of Shares Purchased as Part of Publicly Announced Plans	Maximum Number of Shares that May Yet Be Purchased Under the Plans (2)
January 1- January 31, 2021	—	—		—	2,322,713
February 1- February 28, 2021	1,275,000	$	149.90	1,275,000	1,047,713
March 1- March 31, 2021	550,000	151.56		550,000	497,713
Total	1,825,000	150.40		1,825,000	497,713

(1) 1,825,000 shares were purchased through a publicly announced repurchase plan.

(2) Total stock repurchase authorizations approved by the Company's Board of Directors as of February 17, 2015 were for 30 million shares. These authorizations have no specific dollar or share price targets and no expiration dates.

29

ITEM 6.     EXHIBITS

31.1    Certification of the Chief Executive Officer.

31.2    Certification of the Chief Financial Officer.

32.1    Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.

32.2    Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.

101.INS*    XBRL Instance Document- the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document

101.SCH*    XBRL Taxonomy Extension Schema Document

101.CAL*    XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*    XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*    XBRL Taxonomy Extension Label Linkbase Document

101.PRE*    XBRL Taxonomy Extension Presentation Linkbase Document

104*    Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Furnished with this quarterly report on Form 10-Q are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets at March 31, 2021 and June 30, 2020, (ii) the Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2021 and 2020, (iii) the Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended March 31, 2021 and 2020, (iv) the Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2021 and 2020, and (v) Notes to Condensed Consolidated Financial Statements.

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

		JACK HENRY & ASSOCIATES, INC.
Date:	May 7, 2021	/s/ David B. Foss
		David B. Foss
		Chief Executive Officer and President
Date:	May 7, 2021	/s/ Kevin D. Williams
		Kevin D. Williams
		Chief Financial Officer and Treasurer

31

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David B. Foss, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Jack Henry & Associates, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter, (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 7, 2021

/s/ David B. Foss

David B. Foss

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Kevin D. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Jack Henry & Associates, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter, (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 7, 2021

/s/ Kevin D. Williams

Kevin D. Williams

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Executive Officer of Jack Henry & Associates, Inc. (the "Company"), hereby certify that, to my knowledge, the Quarterly Report on Form 10-Q of the Company for the nine month period ended March 31, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  May 7, 2021

*/s/ David B. Foss

David B. Foss

Chief Executive Officer

*A signed original of this written statement required by Section 906 has been provided to Jack Henry & Associates, Inc. and will be retained by Jack Henry & Associates, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Financial Officer of Jack Henry & Associates, Inc. (the "Company"), hereby certify that, to my knowledge, the Quarterly Report on Form 10-Q of the Company for the nine month period ended March 31, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  May 7, 2021

*/s/ Kevin D. Williams

Kevin D. Williams

Chief Financial Officer

*A signed original of this written statement required by Section 906 has been provided to Jack Henry & Associates, Inc. and will be retained by Jack Henry & Associates, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	9 Months Ended
	Mar. 31, 2021	Apr. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--06-30
Entity Registrant Name	HENRY JACK & ASSOCIATES INC
Entity Central Index Key	0000779152
Entity File Number	0-14112
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	43-1128385
Entity Address, Address Line One	663 Highway 60, P.O. Box 807
Entity Address, City or Town	Monett
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	65708
City Area Code	417
Local Phone Number	235-6652
Title of 12(b) Security	Common Stock ($0.01 par value)
Trading Symbol	JKHY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		74,282,912

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 70,116	$ 213,345
Receivables, net	207,736	300,945
Income tax receivable	9,511	21,051
Prepaid expenses and other	107,575	95,525
Deferred costs	47,731	38,235
Total current assets	442,669	669,101
PROPERTY AND EQUIPMENT, net	248,041	273,432
OTHER ASSETS:
Non-current deferred costs	125,036	113,525
Computer software, net of amortization	360,335	340,466
Other non-current assets	234,838	220,591
Other intangible assets, net of amortization	27,868	29,917
Goodwill	687,458	686,334
Total other assets	1,520,789	1,485,941
Total assets	2,211,499	2,428,474
CURRENT LIABILITIES:
Accounts payable	7,833	9,880
Accrued expenses	152,669	166,689
Notes payable and current maturities of long-term debt	117	115
Deferred revenues	141,110	318,161
Total current liabilities	301,729	494,845
LONG TERM LIABILITIES:
Non-current deferred revenues	70,928	71,461
Deferred income tax liability	257,203	243,998
Debt, net of current maturities	200,120	208
Other long-term liabilities	66,076	68,274
Total long term liabilities	594,327	383,941
Total liabilities	896,056	878,786
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	0	0
Common stock - $0.01 par value; 250,000,000 shares authorized; 103,765,778 shares issued at March 31, 2021; 103,622,563 shares issued at June 30, 2020	1,038	1,036
Additional paid-in capital	510,800	495,005
Retained earnings	2,369,656	2,235,320
Less treasury stock at cost; 29,492,903 shares at March 31, 2021; 26,992,903 shares at June 30, 2020	(1,566,051)	(1,181,673)
Total stockholders' equity	1,315,443	1,549,688
Total liabilities and equity	2,211,499	2,428,474
Customer Relationships [Member]
OTHER ASSETS:
Customer relationships, net of amortization	$ 85,254	$ 95,108

XML

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares	Mar. 31, 2021	Jun. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, authorized shares	500,000	500,000
Preferred stock, issued shares	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	250,000,000	250,000,000
Common stock, issued shares	103,765,778	103,622,563
Treasury Stock, Shares	29,492,903	26,992,903

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
REVENUE	$ 433,776	$ 429,406	$ 1,307,938	$ 1,286,530
EXPENSES
Cost of Revenue	267,770	258,571	788,481	753,629
Research and Development	27,395	28,308	80,233	80,086
Selling, General and Administrative	47,408	50,589	136,801	148,985
Total Expenses	342,573	337,468	1,005,515	982,700
OPERATING INCOME	91,203	91,938	302,423	303,830
INTEREST INCOME (EXPENSE)
Interest income	24	197	144	1,050
Interest expense	(290)	(165)	(525)	(477)
Total Interest Income (Expense)	(266)	32	(381)	573
INCOME BEFORE INCOME TAXES	90,937	91,970	302,042	304,403
PROVISION FOR INCOME TAXES	19,528	18,115	67,435	69,080
NET INCOME	$ 71,409	$ 73,855	$ 234,607	$ 235,323
Earnings Per Share
Basic earnings per share	$ 0.95	$ 0.96	$ 3.09	$ 3.06
Basic weighted average shares outstanding	75,357	76,683	76,022	76,845
Diluted earnings per share	$ 0.95	$ 0.96	$ 3.08	$ 3.06
Diluted weighted average shares outstanding	75,431	76,884	76,141	76,962

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Statement - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Balance, beginning of period (value) at Jun. 30, 2019			$ 1,035	$ 472,029	$ 2,066,073	$ (1,110,124)
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Jun. 30, 2019					0
Shares, beginning of period at Jun. 30, 2019			103,496,026
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for equity-based payment arrangements (shares)			47,098
Shares issued for Employee Stock Purchase Plan (shares)			56,520
Shares issued for equity-based payment arrangements (value)			$ 0	0
Tax withholding related to share-based compensation				(3,328)
Shares issued for Employee Stock Purchase Plan (value)			1	7,200
Stock-based compensation expense				11,689
Net Income	$ 235,323				235,323
Dividends					(94,486)
Purchase of treasury shares						(71,549)
Balance, end of period (value) at Mar. 31, 2020	$ 1,513,863		$ 1,036	487,590	2,206,910	(1,181,673)
Shares, end of period at Mar. 31, 2020			103,599,644
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share	$ 1.23
Balance, beginning of period (value) at Dec. 31, 2019			$ 1,036	481,005	2,166,039	(1,161,334)
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Dec. 31, 2019					0
Shares, beginning of period at Dec. 31, 2019			103,572,129
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for equity-based payment arrangements (shares)			8,616
Shares issued for Employee Stock Purchase Plan (shares)			18,899
Shares issued for equity-based payment arrangements (value)			$ 0	0
Tax withholding related to share-based compensation				(703)
Shares issued for Employee Stock Purchase Plan (value)			0	2,597
Stock-based compensation expense				4,691
Net Income	$ 73,855				73,855
Dividends					(32,984)
Purchase of treasury shares						(20,339)
Balance, end of period (value) at Mar. 31, 2020	$ 1,513,863		$ 1,036	487,590	2,206,910	(1,181,673)
Shares, end of period at Mar. 31, 2020			103,599,644
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share	$ 0.43
Preferred Shares		0
Balance, beginning of period (value) at Jun. 30, 2020	$ 1,549,688		$ 1,036	495,005	2,235,320	(1,181,673)
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Jun. 30, 2020					(493)
Shares, beginning of period at Jun. 30, 2020			103,622,563
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for equity-based payment arrangements (shares)			84,893
Shares issued for Employee Stock Purchase Plan (shares)			58,322
Shares issued for equity-based payment arrangements (value)			$ (1)	(1)
Tax withholding related to share-based compensation				(7,181)
Shares issued for Employee Stock Purchase Plan (value)			1	8,018
Stock-based compensation expense				14,959
Net Income	234,607				234,607
Dividends					(99,778)
Purchase of treasury shares						(384,378)
Balance, end of period (value) at Mar. 31, 2021	$ 1,315,443		$ 1,038	510,800	2,369,656	(1,566,051)
Shares, end of period at Mar. 31, 2021			103,765,778
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share	$ 1.32
Balance, beginning of period (value) at Dec. 31, 2020			$ 1,037	503,205	2,332,509	(1,291,572)
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Dec. 31, 2020					0
Shares, beginning of period at Dec. 31, 2020			103,736,703
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for equity-based payment arrangements (shares)			6,479
Shares issued for Employee Stock Purchase Plan (shares)			22,596
Shares issued for equity-based payment arrangements (value)			$ 0	0
Tax withholding related to share-based compensation				(493)
Shares issued for Employee Stock Purchase Plan (value)			1	2,881
Stock-based compensation expense				5,207
Net Income	$ 71,409				71,409
Dividends					(34,262)
Purchase of treasury shares						(274,479)
Balance, end of period (value) at Mar. 31, 2021	$ 1,315,443		$ 1,038	$ 510,800	$ 2,369,656	$ (1,566,051)
Shares, end of period at Mar. 31, 2021			103,765,778
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share	$ 0.46
Preferred Shares		0

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 234,607	$ 235,323
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	39,816	38,812
Amortization	92,189	89,160
Change in deferred income taxes	13,205	9,082
Expense for stock-based compensation	14,959	11,688
(Gain) Loss on Disposal of Assets	(2,206)	3,095
Changes in operating assets and liabilities:
Change in receivables	92,716	99,425
Change in prepaid expenses, deferred costs and other	(34,886)	(28,396)
Change in accounts payable	(1,529)	(2,129)
Change in accrued expenses	(19,164)	(21,446)
Change in income taxes	13,629	9,905
Change in deferred revenues	(177,021)	(168,066)
Net cash from operating activities	266,315	276,453
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(2,300)	(30,376)
Capital expenditures	(14,916)	(39,563)
Proceeds from dispositions	6,187	11,106
Purchased Software	(5,820)	(6,133)
Computer software developed	(95,991)	(87,284)
Purchase of Investments	(13,300)	(1,150)
Net cash from investing activities	(126,140)	(153,400)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	200,000	55,000
Repayments on financing leases	(86)	(6)
Purchase of treasury stock	(384,378)	(71,549)
Dividends paid	(99,778)	(94,486)
Proceeds from issuance of common stock upon exercise of stock options	1	0
Tax withholding payments related to share based compensation	(7,182)	(3,327)
Proceeds from sale of common stock	8,019	7,201
Net cash from financing activities	(283,404)	(107,167)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(143,229)	15,886
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	213,345	93,628
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 70,116	$ 109,514

XML

Nature of Operations and Summary of Significant Accounting Policies (Text Block)

9 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Summary of Significant Accounting Policies [Text Block]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of the Company

Jack Henry & Associates, Inc. and subsidiaries ("Jack Henry," "JKHY," or the "Company") is a leading provider of technology solutions and payment processing services primarily for the financial services industry. The Company has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide by providing the conversion and implementation services for financial institutions to utilize JKHY systems, and by providing payment processing other related services. JKHY also provides continuing support and services to customers using on-premise or JKHY cloud-based systems.

Consolidation

The condensed consolidated financial statements include the accounts of JKHY and all of its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated.

Comprehensive Income

Comprehensive income for the three and nine months ended March 31, 2021 and 2020 equals the Company’s net income.

Change in Accounting Policy

The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses, ("CECL") with an adoption date of July 1, 2020 (see Note 2). As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to CECL is disclosed below. The adoption of CECL resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of July 1, 2020.

Allowance for Credit Losses

The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events.

The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended March 31, 2021:

	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Allowance for credit losses - beginning balance	$	6,830	$	6,719
Cumulative effect of accounting standards update adoption	—		493
Current provision for expected credit losses	540		1,450
Write-offs charged against allowance	(252)		(1,538)
Recoveries of amounts previously written off	—		(4)
Other	—		(2)
Allowance for credit losses - ending balance	$	7,118	$	7,118

While the novel coronavirus ("COVID-19") pandemic did not result in a significant increase in the Company’s expected credit loss allowance recorded as of March 31, 2021, the Company believes it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic could have a material impact on management’s estimates (see Use of Estimates below).

Property and Equipment

Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets.  Accumulated depreciation at March 31, 2021 totaled $428,063 and at June 30, 2020 totaled $404,388.

Intangible Assets

Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years.  Accumulated amortization of intangible assets totaled $889,945 and $812,856 at March 31, 2021 and June 30, 2020, respectively.

Purchase of Investments

At June 30, 2020, the Company had an investment in the preferred stock of Automated Bookkeeping, Inc ("Autobooks") of $6,000 and at March 31, 2021 of $13,250, which represented a non-controlling share of the voting equity as of that date. The total investment was recorded at cost and is included within other non-current assets on the Company's balance sheet. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing a similar or identical investment. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair value will not be estimated unless there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment.

Common Stock

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2021, there were 29,493 shares in treasury stock and the Company had the remaining authority to repurchase up to 498 additional shares. The total cost of treasury shares at March 31, 2021 was $1,566,051. During the first nine months of fiscal 2021, the Company repurchased 2,500 shares for the treasury. At June 30, 2020, there were 26,993 shares in treasury stock and the Company had authority to repurchase up to 2,998 additional shares. The total cost of treasury shares at June 30, 2020 was $1,181,673.

Income Taxes

Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of deferred benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense.

Interim Financial Statements

The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission ("SEC") and in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended June 30, 2020. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the fiscal year ended June 30, 2020, with updates to certain policies included in this Note 1.

In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly in all material respects the financial position of the Company as of March 31, 2021, the results of its operations for the three and nine months ended March 31, 2021 and 2020, changes in stockholders' equity for the three and nine months ended March 31, 2021 and 2020, and its cash flows for the nine months ended March 31, 2021 and 2020. The condensed consolidated balance sheet at June 30, 2020 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements.

The results of operations for the three and nine months ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire year.

Use of Estimates

The extent to which the COVID-19 pandemic will directly or indirectly impact our business and financial results, including revenue, expenses, cost of revenues, research and development, and selling, general and administrative expenses, will depend on future developments that are highly uncertain, such as new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19 (including the efficacy and distribution of any vaccines), as well as the economic impact on local, regional, national and international customers and markets. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of March 31, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for credit losses, as well as the carrying value of goodwill and other long-lived assets. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended March 31, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.

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Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block)

9 Months Ended

Mar. 31, 2021

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Adopted Accounting Guidance [Text Block]

Recently Adopted Accounting Guidance

In January 2017, the FASB issued Accounting Standard Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted ASU No. 2017-04 on July 1, 2020 and the adoption did not have a material impact on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), or CECL, which prescribes an impairment model for most financial instruments based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial instrument. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption.

The Company adopted CECL effective July 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $493. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables as well as contract assets (see Note 1).

Not Yet Adopted [Text Block]

Not Yet Adopted

In December of 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions and simplifies other requirements of Topic 740 guidance. The ASU will be effective for the Company on July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company plans to adopt ASU 2019-12 effective July 1, 2021 and does not expect the adoption to have a material impact on its consolidated financial statements.

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Revenue and Deferred Costs Revenue and Deferred Costs (Notes)

9 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Costs [Text Block]

REVENUE AND DEFERRED COSTS

Revenue Recognition

The Company generates revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales.

Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Private & Public Cloud1	$	128,703	$	120,443	$	374,160	$	344,922
Product Delivery & Services	49,235		72,891		154,547		205,962
On-Premise Support2	76,701		76,870		257,802		253,332
Services & Support	254,639		270,204		786,509		804,216
Processing	179,137		159,202		521,429		482,314
Total Revenue	$	433,776	$	429,406	$	1,307,938	$	1,286,530

1 The name of this revenue stream was changed in third quarter fiscal 2021 from "outsourcing and cloud" to "private and public cloud" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

2 The name of this revenue stream was changed in third quarter fiscal 2021 from "in-house support" to "on-premise support" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers.

	March 31, 2021		June 30, 2020
Receivables, net	$	207,736	$	300,945
Contract Assets- Current	18,439		21,609
Contract Assets- Non-current	52,920		54,293
Contract Liabilities (Deferred Revenue)- Current	141,110		318,161
Contract Liabilities (Deferred Revenue)- Non-current	70,928		71,461

Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, but where invoicing is contingent upon the completion of other performance obligations or payment terms differ from the provisioning of services. The current portion of contract assets is reported within prepaid expenses and other in the condensed consolidated balance sheet, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue) primarily relate to consideration received from customers in advance of delivery of the related goods and services to the customer. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

The Company analyzes contract language to identify if a significant financing component does exist, and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction.

During the three months ended March 31, 2021 and 2020, the Company recognized revenue of $77,911 and $87,768, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. For the nine months ended March 31, 2021 and 2020, the Company recognized revenue of $207,804 and $216,684, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Amounts recognized that relate to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price re-allocations due to changes in estimates of variable consideration.

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2021, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $4,189,051. The Company expects to recognize approximately 26% over the next 12 months, 20% in 13-24 months, and the balance thereafter.

Contract Costs

The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and customer conversion or implementation-related costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated.

Capitalized costs totaled $299,413 and $271,010, at March 31, 2021 and June 30, 2020, respectively.

For the three months ended March 31, 2021 and 2020, amortization of deferred contract costs was $29,384 and $28,849, respectively. During the nine months ended March 31, 2021 and 2020, amortization of deferred contract costs totaled $92,004 and $88,063, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.

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Fair Value Measures and Disclosures

9 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments[Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset

Fair value of financial assets included in current assets is as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
March 31, 2021
Financial Assets:
Certificates of Deposit	$	—	$	6,200	$	—	$	6,200
June 30, 2020
Financial Assets:
Certificates of Deposit	$	—	$	—	$	—	$	—

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Leases Leases (Notes)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASESThe Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by

using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease.

The Company leases certain office space, data centers and equipment with remaining terms of 1 to 13 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. Variable lease costs are recognized as a variable lease expense when incurred.

At March 31, 2021 and June 30, 2020, the Company had operating lease assets of $59,132 and $63,948 and financing lease assets of $231 and $318, respectively. At March 31, 2021, total operating lease liabilities of $64,047 were comprised of current operating lease liabilities of $11,737 and noncurrent operating lease liabilities of $52,310, and total financing lease liabilities of $237 were comprised of current financing lease liabilities of $117 and noncurrent financing lease liabilities of $120. At June 30, 2020, total operating lease liabilities of $68,309 were comprised of current operating lease liabilities of $11,712 and noncurrent operating lease liabilities of $56,597, and total financing lease liabilities of $323 were comprised of current financing lease liabilities of $115 and noncurrent financing lease liabilities of $208.

Operating lease assets are included within other non-current assets and operating lease liabilities are included within accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s condensed consolidated balance sheet. Operating lease assets were recorded net of accumulated amortization of $21,388 and $13,719 as of March 31, 2021 and June 30, 2020, respectively. Financing lease assets are included within property and equipment, net and financing lease liabilities are included within notes payable (current portion) and long-term debt (noncurrent portion) in the Company’s condensed consolidated balance sheet. Financing lease assets were recorded net of accumulated amortization of $125 and $38 as of March 31, 2021 and June 30, 2020, respectively.

Operating lease costs for the three months ended March 31, 2021 and 2020 were $3,573 and $3,999, respectively. Operating lease costs for the nine months ended March 31, 2021 and 2020 were $11,312 and $12,030, respectively. Financing lease costs for the three and nine months ended March 31, 2021 were $30 and $92, respectively, and were $10 for both the three and nine months of fiscal 2020. Total operating and financing lease costs for the respective quarters included variable lease costs of approximately $1,015 and $934. Total operating and financing lease costs for the respective year-to-date periods included variable lease costs of approximately $3,205 and $2,593. Operating and financing lease expense are included within cost of services, research and development, and selling, general & administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of income.

For the nine months ended March 31, 2021 and 2020, the Company had operating cash flows for payments on operating leases of $10,121 and $11,676, and right-of-use assets obtained in exchange for operating lease liabilities of $4,746 and $2,138, respectively. Operating cash flows for interest paid on financing leases for the nine months ended March 31, 2021 and 2020 were $5 and $1, respectively.

As of March 31, 2021 and June 30, 2020, the weighted-average remaining lease term for the Company's operating leases was 82 months and 88 months and the weighted-average discount rate was 2.64% and 2.76%, respectively. As of March 31, 2021 and June 30, 2020, the weighted-average remaining lease term for the Company's financing leases was 24 months and 33 months, respectively. The weighted-average discount rate for the Company's financing leases was 2.42% as of March 31, 2021 and June 30, 2020.

Maturity of Lease Liabilities under ASC 842

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at March 31, 2021*:

Due Dates (fiscal year)	Future Minimum Rental Payments
2021 (remaining period)	$	3,203
2022	13,320
2023	11,862
2024	9,686
2025	6,899
Thereafter	25,165
Total lease payments	$	70,135
Less: interest	(6,088)
Present value of lease liabilities	$	64,047

*Financing leases were immaterial to the quarter, so a maturity of lease liabilities table has only been included for operating leases.

Lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At March 31, 2021, there were no legally binding lease payments for leases signed but not yet commenced.

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Debt (Text Block)

9 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt and Capital Leases Disclosures [Text Block]

DEBT

Revolving credit facility

On February 10, 2020, the Company entered into a five-year senior, unsecured revolving credit facility. The credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $700,000. The credit facility bears interest at a variable rate equal to (a) a rate based on a eurocurrency rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the U.S. Bank prime rate ("Prime Rate") for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iv) the eurocurrency rate for a one-month interest period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit facility agreement. As of March 31, 2021, the Company was in compliance with all such covenants. The revolving credit facility terminates February 10, 2025. There was $200,000 outstanding under the credit facility at March 31, 2021 and no outstanding balance at June 30, 2020.

Other lines of credit

The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires on April 30, 2023. There was no balance outstanding at March 31, 2021 or June 30, 2020.

Interest

The Company paid interest of $525 and $275 during the nine months ended March 31, 2021 and 2020, respectively.

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Income Taxes (Text Block)

9 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

Provision for income taxes increased for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 with an effective tax rate of 21.5% of income before income taxes, compared to 19.7% in the prior fiscal year quarter. The increase in the effective tax rate comparing the three month periods ended March 31, was primarily due to a change in the timing of the release of reserves for uncertain tax positions resulting from varying statute of limitation periods.

For the nine months ended March 31, 2021, provision for income taxes decreased compared to the nine months ended March 31, 2020, with an effective tax rate of 22.3% of income before income taxes, compared to 22.7% for the same period last year. The decrease to the Company’s fiscal year-to-date effective tax rate compared to the prior fiscal year period was primarily due to the difference in impact of share-based compensation that vested during each of the periods.

The Company paid income taxes, net of refunds, of $40,440 and $49,970 in the nine months ended March 31, 2021 and 2020, respectively.

At March 31, 2021, the Company had $11,731 of gross unrecognized tax benefits before interest and penalties, $10,886 of which, if recognized, would affect our effective tax rate. At March 31, 2021, the Company had accrued interest and penalties of $2,035 related to uncertain tax positions.

The U.S. federal and state income tax returns for fiscal 2017 and all subsequent years remain subject to examination as of March 31, 2021 under statute of limitations rules. The Company believes it is reasonably possible that the liability for unrecognized tax benefits could reduce by $3,500 to $4,500 within twelve months of March 31, 2021 due to lapsing statutes of limitations and examination closures..

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Stock Based Compensation (Text Block)

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement [Text Block]

STOCK-BASED COMPENSATION

Our operating income for the three months ended March 31, 2021 and 2020 included $5,207 and $4,691 of stock-based compensation costs, respectively. Our operating income for the nine months ended March 31, 2021 and 2020 included $14,959 and $11,688 of stock-based compensation costs, respectively.

Stock Options

On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000. For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant.

A summary of option plan activity under this plan is as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate  Intrinsic  Value
Outstanding July 1, 2020	22	$	87.27
Granted	—	—
Forfeited	—	—
Exercised	—	—
Outstanding March 31, 2021	22	$	87.27	$	1,398
Vested and Expected to Vest March 31, 2021	22	$	87.27	$	1,398
Exercisable March 31, 2021	22	$	87.27	$	1,398

At March 31, 2021, there was no compensation cost yet to be recognized related to outstanding options. For options currently exercisable, the weighted average remaining contractual term (remaining period of exercisability) as of March 31, 2021 was 5.25 years.

Restricted Stock Unit Awards

The Company issues unit awards under the 2015 EIP. The following table summarizes non-vested restricted stock unit awards as of March 31, 2021:

Unit awards	Units	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding July 1, 2020	307	$	136.41
Granted	109	171.43
Vested	(113)	107.34
Forfeited	(1)	139.17
Outstanding March 31, 2021	302	$	159.83	$	45,817

The 109 unit awards granted in fiscal 2021 had service requirements and performance targets, with 74 having only service requirements. Those 74 unit awards were valued at the weighted-average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. The remaining 35 unit awards granted in fiscal 2021 had performance targets along with service requirements, all of which were valued using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design to value the unit awards as of the grant date. Per the Company's award vesting and settlement provisions, approximately half of the awards that utilize a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return (TSR) in comparison to the compensation peer group made up of participants approved by the Compensation Committee of the Company's Board of Directors for fiscal year 2021, and the other half of the awards utilizing a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return in comparison to the Standard & Poor's 1500 Information Technology Index (S&P 1500 IT Index) participants. The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows.

	Compensation Peer Group		S&P 1500 IT Index
Volatility	25.17	%	25.17	%
Risk free interest rate	0.11	%	0.11	%
Annual dividend based on most recent quarterly dividend	1.72		1.72
Beginning TSR	37	%	30	%

At March 31, 2021, there was $23,718 of compensation expense, excluding forfeitures, that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.40 years.

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Earnings Per Share Earnings Per Share (Text Block)

9 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

EARNINGS PER SHARE

The following table reflects the reconciliation between basic and diluted earnings per share.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Net Income	$	71,409	$	73,855	$	234,607	$	235,323
Common share information:
Weighted average shares outstanding for basic earnings per share	75,357		76,683		76,022		76,845
Dilutive effect of stock options and restricted stock	74		201		119		117
Weighted average shares outstanding for diluted earnings per share	75,431		76,884		76,141		76,962
Basic earnings per share	$	0.95	$	0.96	$	3.09	$	3.06
Diluted earnings per share	$	0.95	$	0.96	$	3.08	$	3.06

Per share information is based on the weighted average number of common shares outstanding for the three and nine months ended March 31, 2021 and 2020. Stock options and restricted stock units have been included in the calculation of earnings per share to the extent they are dilutive. There were no anti-dilutive stock options or restricted stock units excluded for the quarter ended March 31, 2021 and 3 were excluded for the quarter ended March 31, 2020. There were no anti-dilutive stock options or restricted stock units excluded for the nine months ended March 31, 2021 and 48 were excluded for the nine months ended March 31, 2020.

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Business Acquisitions (Text Block)

9 Months Ended

Mar. 31, 2021

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]

Business Acquisition Disclosure [Text Block]

BUSINESS ACQUISITIONS

Geezeo

On July 1, 2019, the Company acquired all of the equity interest of DebtFolio, Inc. ("Geezeo") for $37,776 paid in cash. The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by cash generated from operations. Geezeo is a Boston-based provider of retail and business digital financial management solutions.

Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below:

Current assets	$	8,925
Long-term assets	397
Identifiable intangible assets	19,114
Deferred income tax liability	(2,593)
Total other liabilities assumed	(7,457)
Total identifiable net assets	18,386
Goodwill	19,390
Net assets acquired	$	37,776

The goodwill of $19,390 arising from this acquisition consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of Geezeo, together with the value of Geezeo's assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is not deductible for income tax purposes.

Identifiable intangible assets from this acquisition consist of customer relationships of $10,522, computer software of $5,791, and other intangible assets of $2,801. The amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years for each.

Current assets were inclusive of cash acquired of $7,400. The fair value of current assets acquired included accounts receivable of $1,373, none of which were expected to be uncollectible.

Costs incurred related to the acquisition of Geezeo in fiscal 2020 totaled $30 for professional services, travel, and other fees, and were expensed as incurred and reported within cost of revenue and selling, general, and administrative expense.

The Company's condensed consolidated statements of income for the three months ended March 31, 2021 included revenue of $3,328 and after-tax net income of $1,190 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the three months ended March 31, 2020 included revenue of $2,356 and after-tax net income of $345 resulting from Geezeo's operations.

The Company's condensed consolidated statements of income for the nine months ended March 31, 2021 included revenue of $9,814 and after-tax net income of $3,413 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the nine months ended March 31, 2020 included revenue of $6,787 and after-tax net income of $523 resulting from Geezeo's operations.

The accompanying condensed consolidated statements of income for the three and nine months ended March 31, 2021 and 2020 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to the current and prior periods of our condensed consolidated financial statements and pro forma financial information has not been provided.

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Reportable Segment Information (Text Block)

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Reportable Segment Information Disclosure [Text Block]

REPORTABLE SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for on-premise installations or JKHY cloud-based 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, Automated Clearing House ("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 and many can be 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.

During the second quarter of fiscal 2021, Jack Henry's call center was consolidated into the Complementary segment. As a result of this consolidation, an immaterial adjustment was made during the third quarter of fiscal 2021 to reclassify revenue and related costs recognized during the three and nine months ended March 31, 2020 from the Core to the Complementary segment. The revenue amounts reclassified were $5,320 for the three months ended March 31, 2020, and $14,795 for the nine months ended March 31, 2020. The cost of revenue amounts reclassified were $3,442 for the three months ended March 31, 2020, and $8,992 for the nine months ended March 31, 2020. An additional immaterial adjustment was made after the quarter ended December 31, 2019 to reclassify cost of revenue recognized in the year-to-date period of fiscal 2020 from the Corporate & Other to the Payments segment to be consistent with the current allocation of cost of revenue by segment. There was no amount reclassified for the three months ended March 31, 2020 and $131 for the nine months ended March 31, 2020.

	Three Months Ended
	March 31, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	126,400	$	15,978	$	100,421	$	11,840	$	254,639
Processing	8,749		144,863		25,010		515		179,137
Total Revenue	135,149		160,841		125,431		12,355		433,776
Cost of Revenue	63,259		87,628		54,207		62,676		267,770
Research and Development									27,395
Selling, General, and Administrative									47,408
Total Expenses									342,573
SEGMENT INCOME	$	71,890	$	73,213	$	71,224	$	(50,321)
OPERATING INCOME									91,203
INTEREST INCOME (EXPENSE)									(266)
INCOME BEFORE INCOME TAXES									$	90,937

	Three Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	133,362	$	19,506	$	103,680	$	13,656	$	270,204
Processing	7,758		130,854		20,304		286		159,202
Total Revenue	141,120		150,360		123,984		13,942		429,406
Cost of Revenue	62,699		80,836		52,133		62,903		258,571
Research and Development									28,308
Selling, General, and Administrative									50,589
Total Expenses									337,468
SEGMENT INCOME	$	78,421	$	69,524	$	71,851	$	(48,961)
OPERATING INCOME									91,938
INTEREST INCOME (EXPENSE)									32
INCOME BEFORE INCOME TAXES									$	91,970

	Nine Months Ended
	March 31, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	397,744		47,089		307,799		33,877		786,509
Processing	25,509		425,667		69,394		859		521,429
Total Revenue	423,253		472,756		377,193		34,736		1,307,938
Cost of Revenue	185,668		260,411		158,638		183,764		788,481
Research and Development									80,233
Selling, General, and Administrative									136,801
Total Expenses									1,005,515
SEGMENT INCOME	$	237,585	$	212,345	$	218,555	$	(149,028)
OPERATING INCOME									302,423
INTEREST INCOME (EXPENSE)									(381)
INCOME BEFORE INCOME TAXES									$	302,042

	Nine Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	402,759	$	51,643	$	306,083	$	43,731	$	804,216
Processing	23,150		400,508		58,054		602		482,314
Total Revenue	425,909		452,151		364,137		44,333		1,286,530
Cost of Revenue	181,697		236,725		152,376		182,831		753,629
Research and Development									80,086
Selling, General, and Administrative									148,985
Total Expenses									982,700
SEGMENT INCOME	$	244,212	$	215,426	$	211,761	$	(138,498)
OPERATING INCOME									303,830
INTEREST INCOME (EXPENSE)									573
INCOME BEFORE INCOME TAXES									$	304,403

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

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Subsequent Events Subsequent Events (Text Block)	9 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTSNone.

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Nature of Operations and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Consolidation

The condensed consolidated financial statements include the accounts of JKHY and all of its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated.

Allowance for Credit Losses

The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events.

Property, Plant and Equipment

Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets.

Intangible Assets

Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years.

Common Stock

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time.

Income Tax, Policy

Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of deferred benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense.

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Fair Value Measures and Disclosures (Policies)

9 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments, Policy [Policy Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset

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Leases Leases (Policies)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lessee, Leases [Policy Text Block]

The Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by

using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease.

The Company leases certain office space, data centers and equipment with remaining terms of 1 to 13 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. Variable lease costs are recognized as a variable lease expense when incurred.

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Nature of Operations and Summary of Significant Accounting Policies- Loss on Disposal of Assets, net (Tables)

9 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Allowance for Credit Loss

The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended March 31, 2021:

	Three Months Ended March 31, 2021		Nine Months Ended March 31, 2021
Allowance for credit losses - beginning balance	$	6,830	$	6,719
Cumulative effect of accounting standards update adoption	—		493
Current provision for expected credit losses	540		1,450
Write-offs charged against allowance	(252)		(1,538)
Recoveries of amounts previously written off	—		(4)
Other	—		(2)
Allowance for credit losses - ending balance	$	7,118	$	7,118

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Revenue and Deferred Costs Revenue and Deferred Costs (Tables)

9 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Private & Public Cloud1	$	128,703	$	120,443	$	374,160	$	344,922
Product Delivery & Services	49,235		72,891		154,547		205,962
On-Premise Support2	76,701		76,870		257,802		253,332
Services & Support	254,639		270,204		786,509		804,216
Processing	179,137		159,202		521,429		482,314
Total Revenue	$	433,776	$	429,406	$	1,307,938	$	1,286,530

1 The name of this revenue stream was changed in third quarter fiscal 2021 from "outsourcing and cloud" to "private and public cloud" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

2 The name of this revenue stream was changed in third quarter fiscal 2021 from "in-house support" to "on-premise support" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

Contract with Customer, Asset and Liability [Table Text Block]

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers.

	March 31, 2021		June 30, 2020
Receivables, net	$	207,736	$	300,945
Contract Assets- Current	18,439		21,609
Contract Assets- Non-current	52,920		54,293
Contract Liabilities (Deferred Revenue)- Current	141,110		318,161
Contract Liabilities (Deferred Revenue)- Non-current	70,928		71,461

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Fair Value Measures and Disclosures (Tables)

9 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements[Table Text Block]

Fair value of financial assets included in current assets is as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
March 31, 2021
Financial Assets:
Certificates of Deposit	$	—	$	6,200	$	—	$	6,200
June 30, 2020
Financial Assets:
Certificates of Deposit	$	—	$	—	$	—	$	—

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Leases Leases (Tables)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Maturity of Lease Liabilities Under ASC 842 [Table Text Block]

Maturity of Lease Liabilities under ASC 842

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at March 31, 2021*:

Due Dates (fiscal year)	Future Minimum Rental Payments
2021 (remaining period)	$	3,203
2022	13,320
2023	11,862
2024	9,686
2025	6,899
Thereafter	25,165
Total lease payments	$	70,135
Less: interest	(6,088)
Present value of lease liabilities	$	64,047

*Financing leases were immaterial to the quarter, so a maturity of lease liabilities table has only been included for operating leases.

Lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At March 31, 2021, there were no legally binding lease payments for leases signed but not yet commenced.

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Stock Based Compensation (Tables)

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Option, Activity [Table Text Block]

A summary of option plan activity under this plan is as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate  Intrinsic  Value
Outstanding July 1, 2020	22	$	87.27
Granted	—	—
Forfeited	—	—
Exercised	—	—
Outstanding March 31, 2021	22	$	87.27	$	1,398
Vested and Expected to Vest March 31, 2021	22	$	87.27	$	1,398
Exercisable March 31, 2021	22	$	87.27	$	1,398

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

The following table summarizes non-vested restricted stock unit awards as of March 31, 2021:

Unit awards	Units	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding July 1, 2020	307	$	136.41
Granted	109	171.43
Vested	(113)	107.34
Forfeited	(1)	139.17
Outstanding March 31, 2021	302	$	159.83	$	45,817

ScheduleOfShareBasedPaymentAwardRSUValuationAssumptionsTableTextBlock [Table Text Block]

The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows.

	Compensation Peer Group		S&P 1500 IT Index
Volatility	25.17	%	25.17	%
Risk free interest rate	0.11	%	0.11	%
Annual dividend based on most recent quarterly dividend	1.72		1.72
Beginning TSR	37	%	30	%

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Earnings Per Share Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2021

Earnings Per Share, Basic and Diluted [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table reflects the reconciliation between basic and diluted earnings per share.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Net Income	$	71,409	$	73,855	$	234,607	$	235,323
Common share information:
Weighted average shares outstanding for basic earnings per share	75,357		76,683		76,022		76,845
Dilutive effect of stock options and restricted stock	74		201		119		117
Weighted average shares outstanding for diluted earnings per share	75,431		76,884		76,141		76,962
Basic earnings per share	$	0.95	$	0.96	$	3.09	$	3.06
Diluted earnings per share	$	0.95	$	0.96	$	3.08	$	3.06

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Business Acquisitions (Tables)

9 Months Ended

Mar. 31, 2021

Geezeo [Member]

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below:

Current assets	$	8,925
Long-term assets	397
Identifiable intangible assets	19,114
Deferred income tax liability	(2,593)
Total other liabilities assumed	(7,457)
Total identifiable net assets	18,386
Goodwill	19,390
Net assets acquired	$	37,776

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Reportable Segment Information (Tables)

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Three Months Ended
	March 31, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	126,400	$	15,978	$	100,421	$	11,840	$	254,639
Processing	8,749		144,863		25,010		515		179,137
Total Revenue	135,149		160,841		125,431		12,355		433,776
Cost of Revenue	63,259		87,628		54,207		62,676		267,770
Research and Development									27,395
Selling, General, and Administrative									47,408
Total Expenses									342,573
SEGMENT INCOME	$	71,890	$	73,213	$	71,224	$	(50,321)
OPERATING INCOME									91,203
INTEREST INCOME (EXPENSE)									(266)
INCOME BEFORE INCOME TAXES									$	90,937

	Three Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	133,362	$	19,506	$	103,680	$	13,656	$	270,204
Processing	7,758		130,854		20,304		286		159,202
Total Revenue	141,120		150,360		123,984		13,942		429,406
Cost of Revenue	62,699		80,836		52,133		62,903		258,571
Research and Development									28,308
Selling, General, and Administrative									50,589
Total Expenses									337,468
SEGMENT INCOME	$	78,421	$	69,524	$	71,851	$	(48,961)
OPERATING INCOME									91,938
INTEREST INCOME (EXPENSE)									32
INCOME BEFORE INCOME TAXES									$	91,970

	Nine Months Ended
	March 31, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	397,744		47,089		307,799		33,877		786,509
Processing	25,509		425,667		69,394		859		521,429
Total Revenue	423,253		472,756		377,193		34,736		1,307,938
Cost of Revenue	185,668		260,411		158,638		183,764		788,481
Research and Development									80,233
Selling, General, and Administrative									136,801
Total Expenses									1,005,515
SEGMENT INCOME	$	237,585	$	212,345	$	218,555	$	(149,028)
OPERATING INCOME									302,423
INTEREST INCOME (EXPENSE)									(381)
INCOME BEFORE INCOME TAXES									$	302,042

	Nine Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	402,759	$	51,643	$	306,083	$	43,731	$	804,216
Processing	23,150		400,508		58,054		602		482,314
Total Revenue	425,909		452,151		364,137		44,333		1,286,530
Cost of Revenue	181,697		236,725		152,376		182,831		753,629
Research and Development									80,086
Selling, General, and Administrative									148,985
Total Expenses									982,700
SEGMENT INCOME	$	244,212	$	215,426	$	211,761	$	(138,498)
OPERATING INCOME									303,830
INTEREST INCOME (EXPENSE)									573
INCOME BEFORE INCOME TAXES									$	304,403

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Nature of Operations and Summary of Significant Accounting Policies Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses- beginning balance	$ 6,830	$ 6,719
Current provision for expected credit losses	540	1,450
Write-offs charged against allowance	(252)	(1,538)
Recoveries of amounts previously written off	0	(4)
Other	0	(2)
Allowance for credit losses- ending balance	7,118	7,118
Accounting Standards Update 2016-13
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses- beginning balance	$ 0	$ (493)

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Nature of Operations and Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Accumulated Depreciation, Property and Equipment	$ 428,063	$ 404,388

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Nature of Operations and Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Finite-Lived Intangible Assets, Accumulated Amortization	$ 889,945	$ 812,856
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	20 years

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Nature of Operations and Summary of Significant Accounting Policies Purchase of Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Automated Bookkeeping, Inc. [Member] | Preferred Stock [Member]
Cost Method Investments, Original Cost	$ 13,250	$ 6,000

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Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Class of Stock Disclosures [Abstract]
Treasury Stock, Common, Shares	29,493	26,993
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	498	2,998
Treasury Stock, Value	$ 1,566,051	$ 1,181,673
Treasury Stock, Shares, Acquired	2,500

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Recent Accounting Pronouncements Recently Adopted Accounting Guidance (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting standards update upon adoption	$ (1,315,443)		$ (1,549,688)	$ (1,513,863)
Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting standards update upon adoption	$ (2,369,656)	$ (2,332,509)	(2,235,320)	$ (2,206,910)	$ (2,166,039)	$ (2,066,073)
Accounting Standards Update 2016-13 | Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting standards update upon adoption		$ 0	$ 493		$ 0	$ 0

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Revenue and Deferred Costs Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 433,776	$ 429,406	$ 1,307,938	$ 1,286,530
Private & Public Cloud
Disaggregation of Revenue [Line Items]
Revenue	128,703	120,443	374,160	344,922
Product Delivery & Service [Member]
Disaggregation of Revenue [Line Items]
Revenue	49,235	72,891	154,547	205,962
On-Premise Support
Disaggregation of Revenue [Line Items]
Revenue	76,701	76,870	257,802	253,332
Services & Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	254,639	270,204	786,509	804,216
Processing [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 179,137	$ 159,202	$ 521,429	$ 482,314

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Revenue and Deferred Costs Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Receivables, net	$ 207,736	$ 300,945
Contract Assets- Current	18,439	21,609
Contract Asset- Non-current	52,920	54,293
Contract Liabilities (Deferred Revenue)- Current	141,110	318,161
Contract Liabilities (Deferred Revenue)- Non- current	$ 70,928	$ 71,461

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Revenue and Deferred Costs Revenue Recognition Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized from beginning deferred balance	$ 77,911	$ 87,768	$ 207,804	$ 216,684
Future revenue related to unsatisfied performance obligations	$ 4,189,051		$ 4,189,051
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Future revenue related to unsatisfied performance obligations, expected percentage to be recognized for given time frame	26.00%		26.00%
Future revenue related to unsatisfied performance obligations, expected timing	12 months		12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Future revenue related to unsatisfied performance obligations, expected percentage to be recognized for given time frame	20.00%		20.00%
Future revenue related to unsatisfied performance obligations, expected timing	12 months		12 months

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Revenue and Deferred Costs Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Capitalized Contract Cost	$ 299,413		$ 299,413		$ 271,010
Amortization of deferred contract costs	$ 29,384	$ 28,849	$ 92,004	$ 88,063

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Fair Value Measures and Disclosures (Details) - Certificates of Deposit - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of Deposit	$ 6,200	$ 0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of Deposit	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of Deposit	6,200	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of Deposit	$ 0	$ 0

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Leases Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Operating Lease, Right-of-Use Asset	$ 59,132		$ 59,132		$ 63,948
Finance Lease, Right-of-Use Asset	231		231		318
Operating Lease Liability	64,047		64,047		68,309
Operating Lease, Liability, Current	11,737		11,737		11,712
Operating Lease, Liability, Noncurrent	52,310		52,310		56,597
Finance Lease, Liability	237		237		323
Finance Lease, Liability, Current	117		117		115
Finance Lease, Liability, Noncurrent	120		120		208
Accumulated Amortization Operating Lease Right-of-use asset	21,388		21,388		13,719
Accumulated Amortization Finance Lease Right-of-use asset	125		125		$ 38
Operating Lease, Cost	3,573	$ 3,999	11,312	$ 12,030
Finance Lease, Interest Expense	30	10	92	10
Variable Lease, Cost	$ 1,015	$ 934	3,205	2,593
Operating Lease, Payments			10,121	11,676
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability			4,746	2,138
Finance Lease, Interest Payment on Liability			$ 5	$ 1
Operating Lease, Weighted Average Remaining Lease Term	82 months		82 months		88 months
Operating Lease, Weighted Average Discount Rate, Percent	2.64%		2.64%		2.76%
Finance Lease, Weighted Average Remaining Lease Term	24 months		24 months		33 months
Finance Lease, Weighted Average Discount Rate, Percent	2.42%		2.42%		2.42%
Minimum [Member]
Remaining lease terms	1 year		1 year
Maximum [Member]
Remaining lease terms	13 years		13 years

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Leases Lease Maturity (Details) - USD ($)	Mar. 31, 2021	Jun. 30, 2020
2021 (remaining period)	$ 3,203,000
2022	13,320,000
2023	11,862,000
2024	9,686,000
2025	6,899,000
Thereafter	25,165,000
Total lease payments	70,135,000
Less: interest	(6,088,000)
Operating Lease Liability	64,047,000	$ 68,309,000
Operating Lease Liability Option To Extend Amounts	5,464,000
Commitments [Member]
Operating Leases, Future Minimum Payments Due	$ 0

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Debt Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Interest paid	$ 525	$ 275
Unsecured Debt [Member]
Debt Instrument [Line Items]
Unsecured Loan, Unused Borrowing Capacity	$ 5,000
Unsecured Loan, Maturity Date	Apr. 30, 2023
Unsecured Loan, Amount Outstanding	$ 0		$ 0
Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, Current Borrowing Capacity	300,000
Revolving Credit Facility, Maximum Borrowing Capacity	$ 700,000
Revolving Credit Facility, Expiration Date	Feb. 10, 2025
Long-term Debt	$ 200,000		$ 0
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	0.50%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	1.00%
Prime Rate [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	(1.00%)

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Income Taxes Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Effective Tax Rate	21.50%	19.70%	22.30%	22.70%
Income Taxes Paid, Net			$ 40,440	$ 49,970
Unrecognized Tax Benefits	$ 11,731		11,731
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	10,886		10,886
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	2,035		2,035
Minimum [Member]
Expiration of statutes of limitations impact on UTB balance	3,500		3,500
Maximum [Member]
Expiration of statutes of limitations impact on UTB balance	$ 4,500		$ 4,500

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Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense for stock-based compensation	$ 5,207	$ 4,691	$ 14,959	$ 11,688
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense not yet recognized, stock options	0		$ 0
Weighted average remaining contractual term, stock options			5 years 3 months
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense yet to be recognized	$ 23,718		$ 23,718
Compensation expense yet to be recognized, period for recognition			1 year 4 months 24 days
Granted, number of shares			109
2015 EIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance	3,000		3,000
2015 EIP [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period			3 years
Termination period after termination of employment			ninety days
Termination period after death			one year
Termination after grant date			ten years
Fair value on grant date less PV of dividends [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of shares			74
Fair value under Monte Carlo [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of shares			35

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Stock Based Compensation Stock Options (Details) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Mar. 31, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, period start, number of shares | shares	22
Granted, number of shares | shares	0
Forfeited, number of shares | shares	0
Exercised, number of shares | shares	0
Outstanding, period end, number of shares | shares	22
Outstanding, period start, weighted average exercise price | $ / shares	$ 87.27
Granted, weighted average exercise price | $ / shares	0
Forfeited, weighted average exercise price | $ / shares	0
Exercised, weighted average exercise price | $ / shares	0
Outstanding, period end, weighted average exercise price | $ / shares	$ 87.27
Outstanding, period end, intrinsic value | $	$ 1,398
Vested and expected to vest, period end, number of shares | shares	22
Vested and expected to vest, period end, weighted average exercise price | $ / shares	$ 87.27
Vested and expected to vest, period end, intrinsic value | $	$ 1,398
Exercisable, period end, number of shares | shares	22
Exercisable, period end, weighted average exercise price | $ / shares	$ 87.27
Exercisable, period end, intrinsic value | $	$ 1,398

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Stock Based Compensation Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Mar. 31, 2021 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, period start, number of shares | shares	307
Granted, number of shares | shares	109
Vested, number of shares | shares	(113)
Forfeited, number of shares | shares	(1)
Outstanding, period end, number of shares | shares	302
Outstanding, period start, weighted average grant date fair value | $ / shares	$ 136.41
Granted, weighted average grant date fair value | $ / shares	171.43
Vested, weighted average grant date fair value | $ / shares	107.34
Forfeited, weighted average grant date fair value | $ / shares	139.17
Outstanding, period end, weighted average grant date fair value | $ / shares	$ 159.83
Restricted Stock Units, Aggregate Intrinsic Value, Outstanding | $	$ 45,817

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Stock Based Compensation RSU Measurement Date Assumptions (Details)	9 Months Ended
	Mar. 31, 2021 $ / shares Rate
Compensation Peer Group [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Volatility	25.17%
Risk free interest rate	0.11%
Estimated annual dividend | $ / shares	$ 0.0172
Beginning total shareholder return	37.00%
S&P 500 IT Index [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Volatility	25.17%
Risk free interest rate	0.11%
Estimated annual dividend | $ / shares	$ 0.0172
Beginning total shareholder return	30.00%

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Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share, Basic and Diluted [Abstract]
Net Income	$ 71,409	$ 73,855	$ 234,607	$ 235,323
Common share information:
Weighted average shares outstanding for basic earnings per share	75,357	76,683	76,022	76,845
Dilutive effect of stock options and restricted stock	74	201	119	117
Weighted average shares outstanding for diluted earnings per share	75,431	76,884	76,141	76,962
Basic earnings per share	$ 0.95	$ 0.96	$ 3.09	$ 3.06
Diluted earnings per share	$ 0.95	$ 0.96	$ 3.08	$ 3.06
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	3	0	48

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Business Acquisitions (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 01, 2019	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Business Acquisition [Line Items]
Goodwill		$ 687,458		$ 687,458		$ 686,334
Geezeo [Member]
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition	Jul. 01, 2019
Payments to Acquire Businesses, Gross	$ 37,776
Current assets	8,925
Long-term assets	397
Identifiable intangible assets	19,114
Deferred income tax liability	(2,593)
Total other liabilities assumed	(7,457)
Total identifiable net assets	18,386
Net assets acquired	37,776
Acquisition goodwill expected to be tax deductible	0
Cash Acquired from Acquisition	7,400
Acquired Receivable, Fair Value	1,373
Acquired Receivables, Estimated Uncollectible	0
Costs incurred related to acquisition	30
Revenue of Acquiree since Acquisition Date, Actual		3,328	$ 2,356	9,814	$ 6,787
Earnings or Loss of Acquiree since Acquisition Date, Actual		$ 1,190	$ 345	$ 3,413	$ 523
Business Combination, Acquired Receivables, Gross Contractual Amount	1,373
Customer Relationships [Member] | Geezeo [Member]
Business Acquisition [Line Items]
Identifiable Intangible Assets Acquired	$ 10,522
Identifiable Intangible Assets, Weighted Average Useful Life	15 years
Computer Software, Intangible Asset [Member] | Geezeo [Member]
Business Acquisition [Line Items]
Identifiable Intangible Assets Acquired	$ 5,791
Identifiable Intangible Assets, Weighted Average Useful Life	15 years
Other Intangible Assets [Member] | Geezeo [Member]
Business Acquisition [Line Items]
Identifiable Intangible Assets Acquired	$ 2,801
Identifiable Intangible Assets, Weighted Average Useful Life	15 years
Complementary [Member] | Geezeo [Member]
Business Acquisition [Line Items]
Goodwill	$ 19,390

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Reportable Segment Information Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2021 segment	Mar. 31, 2020 USD ($)
Segment Reporting [Abstract]
Number of Reportable Segments | segment		4
Core [Member]
Segment Reporting [Abstract]
Reclassification of Revenue Between Reportable Segments	$ (5,320)		$ (14,795)
Reclassification of Cost Between Reportable Segments	(3,442)		(8,992)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Reclassification of Revenue Between Reportable Segments	(5,320)		(14,795)
Reclassification of Cost Between Reportable Segments	(3,442)		(8,992)
Payments [Member]
Segment Reporting [Abstract]
Reclassification of Cost Between Reportable Segments	0		131
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Reclassification of Cost Between Reportable Segments	0		131
Complementary [Member]
Segment Reporting [Abstract]
Reclassification of Revenue Between Reportable Segments	5,320		14,795
Reclassification of Cost Between Reportable Segments	3,442		8,992
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Reclassification of Revenue Between Reportable Segments	5,320		14,795
Reclassification of Cost Between Reportable Segments	3,442		8,992
Corporate and Other [Member]
Segment Reporting [Abstract]
Reclassification of Cost Between Reportable Segments	0		(131)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Reclassification of Cost Between Reportable Segments	$ 0		$ (131)

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Reportable Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	$ 433,776	$ 429,406	$ 1,307,938	$ 1,286,530
Cost of Revenue	267,770	258,571	788,481	753,629
Research and Development	27,395	28,308	80,233	80,086
Selling, General and Administrative	47,408	50,589	136,801	148,985
Total Expenses	342,573	337,468	1,005,515	982,700
OPERATING INCOME	91,203	91,938	302,423	303,830
INTEREST INCOME (EXPENSE)	(266)	32	(381)	573
INCOME BEFORE INCOME TAXES	90,937	91,970	302,042	304,403
Core [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	135,149	141,120	423,253	425,909
Cost of Revenue	63,259	62,699	185,668	181,697
SEGMENT INCOME	71,890	78,421	237,585	244,212
Payments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	160,841	150,360	472,756	452,151
Cost of Revenue	87,628	80,836	260,411	236,725
SEGMENT INCOME	73,213	69,524	212,345	215,426
Complementary [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	125,431	123,984	377,193	364,137
Cost of Revenue	54,207	52,133	158,638	152,376
SEGMENT INCOME	71,224	71,851	218,555	211,761
Corporate and Other [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	12,355	13,942	34,736	44,333
Cost of Revenue	62,676	62,903	183,764	182,831
SEGMENT INCOME	(50,321)	(48,961)	(149,028)	(138,498)
Services & Support [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	254,639	270,204	786,509	804,216
Services & Support [Member] | Core [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	126,400	133,362	397,744	402,759
Services & Support [Member] | Payments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	15,978	19,506	47,089	51,643
Services & Support [Member] | Complementary [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	100,421	103,680	307,799	306,083
Services & Support [Member] | Corporate and Other [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	11,840	13,656	33,877	43,731
Processing [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	179,137	159,202	521,429	482,314
Processing [Member] | Core [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	8,749	7,758	25,509	23,150
Processing [Member] | Payments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	144,863	130,854	425,667	400,508
Processing [Member] | Complementary [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	25,010	20,304	69,394	58,054
Processing [Member] | Corporate and Other [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	$ 515	$ 286	$ 859	$ 602