Reportable Segment Information (Text Block)

3 Months Ended

Sep. 30, 2022

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.

Immaterial adjustments have been made to reclassify revenue that was recognized in the three months ended September 30, 2021 from the Complementary to the Payments and Corporate and Other segments. Immaterial adjustments were also made to reclassify cost of revenue from the Corporate and Other and Complementary segments to the Payments segment for the three months ended September 30, 2021. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed from Complementary to Payments was $2,969 and from Complementary to Corporate and Other was $734. Cost of revenue reclassed from Complementary and Corporate and Other to Payments was $1,356.

	Three Months Ended
	September 30, 2022
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	165,024	$	18,659	$	118,147	$	18,319	$	320,149
Processing	10,100		167,881		30,203		869		209,053
Total Revenue	175,124		186,540		148,350		19,188		529,202
Cost of Revenue	72,240		101,155		58,437		66,429		298,261
Research and Development									32,993
Selling, General, and Administrative									57,225
Total Expenses									388,479
SEGMENT INCOME	$	102,884	$	85,385	$	89,913	$	(47,241)
OPERATING INCOME									140,723
INTEREST INCOME (EXPENSE)									(1,424)
INCOME BEFORE INCOME TAXES									$	139,299

	Three Months Ended
	September 30, 2021
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	155,838	$	17,063	$	112,806	$	11,787	$	297,494
Processing	9,447		155,528		24,972		615		190,562
Total Revenue	165,285		172,591		137,778		12,402		488,056
Cost of Revenue	66,902		94,582		54,417		60,735		276,636
Research and Development									26,754
Selling, General, and Administrative									51,071
Total Expenses									354,461
SEGMENT INCOME	$	98,383	$	78,009	$	83,361	$	(48,333)
OPERATING INCOME									133,595
INTEREST INCOME (EXPENSE)									(241)
INCOME BEFORE INCOME TAXES									$	133,354

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.