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 September 30, 20222023
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 PrinciplePrincipal 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 classTrading SymbolName of each exchange on which registered
Common Stock ($0.01 par value)JKHYNasdaq 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 filerAccelerated filer
  
Non-accelerated filerSmaller 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 October 28, 2022,27, 2023, the Registrant had 72,949,43372,828,202 shares of Common Stock outstanding ($0.01 par value).



TABLE OF CONTENTS
Page Reference
PART IFINANCIAL INFORMATION
ITEM 1.Condensed Consolidated Balance Sheets as of September 30, 2022,2023, and June 30, 20222023 (Unaudited)
Condensed Consolidated Statements of Income for the Three Months Ended September 30, 20222023 and 20212022 (Unaudited)
Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended September 30, 20222023 and 20212022 (Unaudited)
Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 20222023 and 20212022 (Unaudited)
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
 
ITEM 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
   
ITEM 3.Quantitative and Qualitative Disclosures about Market Risk
   
ITEM 4.Controls and Procedures
  
PART IIOTHER INFORMATION
ITEM 1.Legal Proceedings
ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds
ITEM 5.Other Information
 
ITEM 6.Exhibits
Signatures
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 fiscal year ended June 30, 2022,2023, 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





































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Table of Contents
JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIESJACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIESJACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In Thousands, Except Share and Per Share Data)(In Thousands, Except Share and Per Share Data)(In Thousands, Except Share and Per Share Data)
September 30,
2022
June 30,
2022
September 30,
2023
June 30,
2023
ASSETSASSETS  ASSETS  
CURRENT ASSETS:CURRENT ASSETS:  CURRENT ASSETS:  
Cash and cash equivalentsCash and cash equivalents$31,970 $48,787 Cash and cash equivalents$31,467 $12,243 
Receivables, netReceivables, net247,541 348,072 Receivables, net288,733 361,252 
Income tax receivableIncome tax receivable 13,822 Income tax receivable 7,523 
Prepaid expenses and otherPrepaid expenses and other134,539 125,537 Prepaid expenses and other163,670 169,178 
Deferred costsDeferred costs71,047 57,105 Deferred costs79,626 77,766 
Assets held for sale 20,201 
Total current assetsTotal current assets485,097 613,524 Total current assets563,496 627,962 
PROPERTY AND EQUIPMENT, netPROPERTY AND EQUIPMENT, net208,307 211,709 PROPERTY AND EQUIPMENT, net202,847 205,664 
OTHER ASSETS:OTHER ASSETS:  OTHER ASSETS:  
Non-current deferred costsNon-current deferred costs148,445 143,750 Non-current deferred costs170,342 161,465 
Computer software, net of amortizationComputer software, net of amortization534,488 410,957 Computer software, net of amortization574,143 565,714 
Other non-current assetsOther non-current assets300,924 293,526 Other non-current assets334,825 322,698 
Customer relationships, net of amortizationCustomer relationships, net of amortization72,482 69,503 Customer relationships, net of amortization63,335 65,528 
Other intangible assets, net of amortizationOther intangible assets, net of amortization24,562 25,137 Other intangible assets, net of amortization20,438 19,998 
GoodwillGoodwill804,155 687,458 Goodwill804,797 804,797 
Total other assetsTotal other assets1,885,056 1,630,331 Total other assets1,967,880 1,940,200 
Total assetsTotal assets$2,578,460 $2,455,564 Total assets$2,734,223 $2,773,826 
LIABILITIES AND STOCKHOLDERS' EQUITYLIABILITIES AND STOCKHOLDERS' EQUITY  LIABILITIES AND STOCKHOLDERS' EQUITY  
CURRENT LIABILITIES:CURRENT LIABILITIES:  CURRENT LIABILITIES:  
Accounts payableAccounts payable$20,445 $21,034 Accounts payable$20,286 $19,156 
Accrued expensesAccrued expenses147,679 192,042 Accrued expenses157,945 172,629 
Accrued income taxesAccrued income taxes27,394 — Accrued income taxes30,678 — 
Notes payable and current maturities of long-term debt41 67 
Deferred revenuesDeferred revenues274,772 330,687 Deferred revenues261,656 331,974 
Total current liabilitiesTotal current liabilities470,331 543,830 Total current liabilities470,565 523,759 
LONG-TERM LIABILITIES:LONG-TERM LIABILITIES:  LONG-TERM LIABILITIES:  
Non-current deferred revenuesNon-current deferred revenues70,374 71,485 Non-current deferred revenues71,751 67,755 
Deferred income tax liabilityDeferred income tax liability280,285 292,630 Deferred income tax liability234,254 244,431 
Debt, net of current maturitiesDebt, net of current maturities245,000 115,000 Debt, net of current maturities245,000 275,000 
Other long-term liabilitiesOther long-term liabilities51,332 50,996 Other long-term liabilities52,705 54,371 
Total long-term liabilitiesTotal long-term liabilities646,991 530,111 Total long-term liabilities603,710 641,557 
Total liabilitiesTotal liabilities1,117,322 1,073,941 Total liabilities1,074,275 1,165,316 
STOCKHOLDERS' EQUITYSTOCKHOLDERS' EQUITY  STOCKHOLDERS' EQUITY  
Preferred stock - $1 par value; 500,000 shares authorized, none issuedPreferred stock - $1 par value; 500,000 shares authorized, none issued — Preferred stock - $1 par value; 500,000 shares authorized, none issued — 
Common stock - $0.01 par value; 250,000,000 shares authorized;
103,953,128 shares issued at September 30, 2022;
103,921,724 shares issued at June 30, 2022
1,040 1,039 
Common stock - $0.01 par value; 250,000,000 shares authorized;
104,144,549 shares issued at September 30, 2023;
104,088,784 shares issued at June 30, 2023
Common stock - $0.01 par value; 250,000,000 shares authorized;
104,144,549 shares issued at September 30, 2023;
104,088,784 shares issued at June 30, 2023
1,041 1,041 
Additional paid-in capitalAdditional paid-in capital560,034 551,360 Additional paid-in capital591,458 583,836 
Retained earningsRetained earnings2,707,182 2,636,342 Retained earnings2,919,567 2,855,751 
Less treasury stock at cost
31,042,903 shares at September 30, 2022;
31,042,903 shares at June 30, 2022
(1,807,118)(1,807,118)
Less treasury stock at cost
31,323,119 shares at September 30, 2023;
31,194,351 shares at June 30, 2023
Less treasury stock at cost
31,323,119 shares at September 30, 2023;
31,194,351 shares at June 30, 2023
(1,852,118)(1,832,118)
Total stockholders' equityTotal stockholders' equity1,461,138 1,381,623 Total stockholders' equity1,659,948 1,608,510 
Total liabilities and equityTotal liabilities and equity$2,578,460 $2,455,564 Total liabilities and equity$2,734,223 $2,773,826 


See notes to condensed consolidated financial statementsstatements.
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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIESJACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIESJACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In Thousands, Except Per Share Data)(In Thousands, Except Per Share Data)(In Thousands, Except Per Share Data)
Three Months EndedThree Months Ended
September 30, September 30,
20222021 20232022
REVENUEREVENUE$529,202 $488,056 REVENUE$571,368 $529,202 
EXPENSESEXPENSES  EXPENSES  
Cost of RevenueCost of Revenue298,261 276,636 Cost of Revenue323,002 298,261 
Research and DevelopmentResearch and Development32,993 26,754 Research and Development36,892 32,993 
Selling, General, and AdministrativeSelling, General, and Administrative57,225 51,071 Selling, General, and Administrative78,774 57,225 
Total ExpensesTotal Expenses388,479 354,461 Total Expenses438,668 388,479 
OPERATING INCOMEOPERATING INCOME140,723 133,595 OPERATING INCOME132,700 140,723 
INTEREST INCOME (EXPENSE)INTEREST INCOME (EXPENSE)  INTEREST INCOME (EXPENSE)  
Interest IncomeInterest Income152 Interest Income4,745 152 
Interest ExpenseInterest Expense(1,576)(248)Interest Expense(4,197)(1,576)
Total Interest Income (Expense)Total Interest Income (Expense)(1,424)(241)Total Interest Income (Expense)548 (1,424)
INCOME BEFORE INCOME TAXESINCOME BEFORE INCOME TAXES139,299 133,354 INCOME BEFORE INCOME TAXES133,248 139,299 
PROVISION FOR INCOME TAXESPROVISION FOR INCOME TAXES32,750 31,240 PROVISION FOR INCOME TAXES31,569 32,750 
NET INCOMENET INCOME$106,549 $102,114 NET INCOME$101,679 $106,549 
Basic earnings per shareBasic earnings per share$1.46 $1.38 Basic earnings per share$1.40 $1.46 
Basic weighted average shares outstandingBasic weighted average shares outstanding72,896 74,016 Basic weighted average shares outstanding72,869 72,896 
Diluted earnings per shareDiluted earnings per share$1.46 $1.38 Diluted earnings per share$1.39 $1.46 
Diluted weighted average shares outstandingDiluted weighted average shares outstanding73,138 74,142 Diluted weighted average shares outstanding73,014 73,138 















See notes to condensed consolidated financial statementsstatements.
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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIESJACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIESJACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)
(In Thousands, Except Share and Per Share Data)(In Thousands, Except Share and Per Share Data)(In Thousands, Except Share and Per Share Data)
Three Months EndedThree Months Ended
September 30, September 30,
20222021 20232022
PREFERRED SHARES:PREFERRED SHARES: — PREFERRED SHARES: — 
COMMON SHARES:COMMON SHARES:COMMON SHARES:
Shares, beginning of periodShares, beginning of period103,921,724 103,795,169 Shares, beginning of period104,088,784 103,921,724 
Shares issued for equity-based payment arrangementsShares issued for equity-based payment arrangements12,141 5,432 Shares issued for equity-based payment arrangements31,057 12,141 
Shares issued for Employee Stock Purchase PlanShares issued for Employee Stock Purchase Plan19,263 21,664 Shares issued for Employee Stock Purchase Plan24,708 19,263 
Shares, end of periodShares, end of period103,953,128 103,822,265 Shares, end of period104,144,549 103,953,128 
COMMON STOCK - PAR VALUE $0.01 PER SHARE:COMMON STOCK - PAR VALUE $0.01 PER SHARE:COMMON STOCK - PAR VALUE $0.01 PER SHARE:
Balance, beginning of periodBalance, beginning of period$1,039 $1,038 Balance, beginning of period$1,041 $1,039 
Shares issued for Employee Stock Purchase PlanShares issued for Employee Stock Purchase Plan1 — Shares issued for Employee Stock Purchase Plan 
Balance, end of periodBalance, end of period$1,040 $1,038 Balance, end of period$1,041 $1,040 
ADDITIONAL PAID-IN CAPITAL:ADDITIONAL PAID-IN CAPITAL:ADDITIONAL PAID-IN CAPITAL:
Balance, beginning of periodBalance, beginning of period$551,360 $518,960 Balance, beginning of period$583,836 $551,360 
Tax withholding related to share-based compensationTax withholding related to share-based compensation(1,556)(953)Tax withholding related to share-based compensation(2,944)(1,556)
Shares issued for Employee Stock Purchase PlanShares issued for Employee Stock Purchase Plan3,232 3,177 Shares issued for Employee Stock Purchase Plan3,418 3,232 
Stock-based compensation expenseStock-based compensation expense6,998 6,071 Stock-based compensation expense7,148 6,998 
Balance, end of periodBalance, end of period$560,034 $527,255 Balance, end of period$591,458 $560,034 
RETAINED EARNINGS:RETAINED EARNINGS:RETAINED EARNINGS:
Balance, beginning of periodBalance, beginning of period$2,636,342 $2,412,496 Balance, beginning of period$2,855,751 $2,636,342 
Net incomeNet income106,549 102,114 Net income101,679 106,549 
DividendsDividends(35,709)(34,036)Dividends(37,863)(35,709)
Balance, end of periodBalance, end of period$2,707,182 $2,480,574 Balance, end of period$2,919,567 $2,707,182 
TREASURY STOCK:TREASURY STOCK:TREASURY STOCK:
Balance, beginning of periodBalance, beginning of period$(1,807,118)$(1,613,202)Balance, beginning of period$(1,832,118)$(1,807,118)
Purchase of treasury sharesPurchase of treasury shares(20,000)— 
Balance, end of periodBalance, end of period$(1,807,118)$(1,613,202)Balance, end of period$(1,852,118)$(1,807,118)
TOTAL STOCKHOLDERS' EQUITYTOTAL STOCKHOLDERS' EQUITY$1,461,138 $1,395,665 TOTAL STOCKHOLDERS' EQUITY$1,659,948 $1,461,138 
Dividends declared per shareDividends declared per share$0.49 $0.46 Dividends declared per share$0.52 $0.49 




See notes to condensed consolidated financial statements.
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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands)
 Three Months Ended
 September 30,
 20232022
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net Income$101,679 $106,549 
Adjustments to reconcile net income from operations
     to net cash from operating activities:
  
Depreciation12,052 12,416 
Amortization37,183 33,194 
Change in deferred income taxes(10,178)(12,345)
Expense for stock-based compensation7,148 6,998 
(Gain)/loss on disposal of assets(111)(6,124)
Changes in operating assets and liabilities:  
Change in receivables  72,519 101,509 
Change in prepaid expenses, deferred costs and other(17,356)(34,740)
Change in accounts payable(1,234)(2,168)
Change in accrued expenses(17,285)(45,265)
Change in income taxes39,044 41,937 
Change in deferred revenues(66,322)(65,130)
Net cash from operating activities157,139 136,831 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Payment for acquisitions, net of cash acquired (228,986)
Capital expenditures(7,612)(7,737)
Proceeds from dispositions852 26,252 
Purchased software(2,280)(408)
Computer software developed(41,486)(38,715)
Net cash from investing activities(50,526)(249,594)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Borrowings on credit facilities135,000 280,000 
Repayments on credit facilities and financing leases(165,000)(150,022)
Purchase of treasury stock(20,000)— 
Dividends paid(37,863)(35,709)
Tax withholding payments related to share-based compensation(2,944)(1,556)
Proceeds from sale of common stock3,418 3,233 
Net cash from financing activities(87,389)95,946 
NET CHANGE IN CASH AND CASH EQUIVALENTS$19,224 $(16,817)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD$12,243 $48,787 
CASH AND CASH EQUIVALENTS, END OF PERIOD$31,467 $31,970 









See notes to condensed consolidated financial statements.
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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands)
 Three Months Ended
 September 30,
 20222021
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net Income$106,549 $102,114 
Adjustments to reconcile net income from operations
     to net cash from operating activities:
  
Depreciation12,416 13,157 
Amortization33,194 31,016 
Change in deferred income taxes(12,345)6,088 
Expense for stock-based compensation6,998 6,071 
(Gain)/loss on disposal of assets(6,124)166 
Changes in operating assets and liabilities:  
Change in receivables  101,509 53,404 
Change in prepaid expenses, deferred costs and other(34,740)(20,345)
Change in accounts payable(2,168)2,859 
Change in accrued expenses(45,265)(37,231)
Change in income taxes41,937 9,912 
Change in deferred revenues(65,130)(60,662)
Net cash from operating activities136,831 106,549 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Payment for acquisitions, net of cash acquired(228,986)— 
Capital expenditures(7,737)(9,273)
Proceeds from dispositions26,252 14 
Purchased software(408)(1,221)
Computer software developed(38,715)(35,971)
Net cash from investing activities(249,594)(46,451)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Borrowings on credit facilities280,000 — 
Repayments on financing leases(150,022)(35,027)
Dividends paid(35,709)(34,036)
Tax withholding payments related to share-based compensation(1,556)(953)
Proceeds from sale of common stock3,233 3,177 
Net cash from financing activities95,946 (66,839)
NET CHANGE IN CASH AND CASH EQUIVALENTS$(16,817)$(6,741)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD$48,787 $50,992 
CASH AND CASH EQUIVALENTS, END OF PERIOD$31,970 $44,251 









See notes to condensed consolidated financial statements
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JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In Thousands, Except Per Share Amounts)

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 well-rounded financial technology company. JKHYJack Henry was founded in 1976 as a provider of core information processing solutions for banks. Today, the Company’s extensive array of products and services includes processing transactions, automating business processes, and managing information for approximately 7,8007,500 financial institutions and diverse corporate entities.
Consolidation
The condensed consolidated financial statements include the accounts of JKHYJack Henry 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 months ended September 30, 20222023 and 2021,2022, equals the Company’s net income.
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 ended September 30, 2022:2023:
Three Months Ended September 30,Three Months Ended September 30,
2022202120232022
Allowance for credit losses - beginning balanceAllowance for credit losses - beginning balance$7,616 $7,267 Allowance for credit losses - beginning balance$7,955 $7,616 
Current provision for expected credit lossesCurrent provision for expected credit losses480 540 Current provision for expected credit losses480 480 
Write-offs charged against allowanceWrite-offs charged against allowance(65)(145)Write-offs charged against allowance(231)(65)
Recoveries of amounts previously written offRecoveries of amounts previously written off(1)(1)Recoveries of amounts previously written off— (1)
Allowance for credit losses - ending balanceAllowance for credit losses - ending balance$8,030 $7,661 Allowance for credit losses - ending balance$8,204 $8,030 
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 September 30, 2022,2023, totaled $461,282$476,923 and at June 30, 2022,2023, totaled $454,879.$466,711.
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 3 to 20 years. Accumulated amortization of intangible assets totaled $1,063,994$1,187,086 and $1,030,800$1,149,913 at September 30, 2022,2023, and June 30, 2022,2023, respectively.
Purchase of Investments
At September 30, 2022,2023, and June 30, 2022,2023, the Company had an investment in the preferred stock of Automated Bookkeeping, IncAutobooks, Inc. ("Autobooks") of $18,250, 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.
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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 September 30, 2022, and June 30, 2022,2023, there were 31,04331,323 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,9483,667 additional shares. The total cost of treasury shares at September 30, 2022, and June 30, 2022,2023, was $1,807,118.$1,852,118. During the first three months of fiscal 2023,2024, the Company did notrepurchased 129 shares. At June 30, 2023, there were 31,194 shares in treasury stock and the Company had the remaining authority to repurchase anyup to 3,796 additional shares. The total cost of treasury shares at June 30, 2023, was $1,832,118 and the Company repurchased no shares during the first three months of its common stock.fiscal 2023.
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 unrecognized 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, 2022. 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, 2022, with updates to certain policies included in this Note 1.2023.
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 September 30, 2022,2023, the results of its operations for the three months ended September 30, 20222023 and 2021,2022, changes in stockholders' equity for the three months ended September 30, 20222023 and 2021,2022, and its cash flows for the three months ended September 30, 20222023 and 2021.2022. The condensed consolidated balance sheet at June 30, 2022,2023, 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 months ended September 30, 2022,2023, are not necessarily indicative of the results to be expected for the entire fiscal year.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Risks and UncertaintiesSignificant Accounting Policies
The accounting policies followed by the Company has determined there was not a material impactare set forth in Note 1 to the Company’sCompany's consolidated financial statements as of andincluded in its Form 10-K for the quarterfiscal year ended June 30, 2023. For the three months ended September 30, 2022, as a result of the continuing impact of the COVID-19 pandemic. However, the extent to which the COVID-19 pandemic may impact the Company's future operational and financial performance remains uncertain and difficult to predict. The Company will continue to monitor developments related2023, there have been no new or material changes to the COVID-19 pandemic.significant accounting policies discussed in the Company’s Form 10-K for the fiscal year ended June 30, 2023, that are of significance, or potential significance, to the Company.
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NOTE 2.     RECENT ACCOUNTING PRONOUNCEMENTS
Not YetRecently Adopted Accounting Guidance
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company plans to adoptadopted the ASU effective July 1, 2023, and will apply it prospectively to business combinations occurring on or after that date.
NOTE 3.    REVENUE AND DEFERRED COSTS
Revenue Recognition
The Company generates revenue from data processing and hosting, 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 September 30,Three Months Ended September 30,
2022202120232022
Private and Public CloudPrivate and Public Cloud$148,999 $135,642 Private and Public Cloud$163,489 $148,999 
Product Delivery and ServicesProduct Delivery and Services57,523 51,516 Product Delivery and Services60,839 57,523 
On-Premise SupportOn-Premise Support113,627 110,336 On-Premise Support117,877 113,627 
Services & Support320,149 297,494 
Services and SupportServices and Support342,205 320,149 
ProcessingProcessing209,053 190,562 Processing229,163 209,053 
Total RevenueTotal Revenue$529,202 $488,056 Total Revenue$571,368 $529,202 
Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers.
September 30,
2022
June 30,
2022
Receivables, net$247,541 $348,072 
Contract Assets- Current24,240 24,447 
Contract Assets- Non-current68,386 68,261 
Contract Liabilities (Deferred Revenue)- Current274,772 330,687 
Contract Liabilities (Deferred Revenue)- Non-current70,374 71,485 
September 30,
2023
June 30,
2023
Receivables, net$288,733 $361,252 
Contract Assets - Current27,926 26,711 
Contract Assets - Non-current79,480 81,561 
Contract Liabilities (Deferred Revenue) - Current261,656 331,974 
Contract Liabilities (Deferred Revenue) - Non-current71,751 67,755 
Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, except 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.
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During the three months ended September 30, 20222023, and 2021,2022, the Company recognized revenue of $97,990$99,220 and $99,316,$97,990, 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 September 30, 2022,2023, 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 $5,643,334.$3,563,944. The Company expects to recognize approximately 26%25% over the next 12 months, 20%19% 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 $397,833$450,294 and $380,095,$442,012, at September 30, 2022,2023, and June 30, 2022,2023, respectively.
For the three months ended September 30, 20222023, and 2021,2022, amortization of deferred contract costs wastotaled $50,537 and $41,980, and $35,844, 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 MeasurementsTotal FairEstimated Fair Value MeasurementsTotal Fair
Level 1Level 2Level 3Value Level 1Level 2Level 3Value
September 30, 2022   
September 30, 2023September 30, 2023   
Financial Assets:Financial Assets:Financial Assets:
Certificates of Deposit Certificates of Deposit$ $1,213 $ $1,213  Certificates of Deposit$ $2,255 $ $2,255 
Financial Liabilities:Financial Liabilities:Financial Liabilities:
Revolving credit facility$ $245,000 $ $245,000 
June 30, 2022   
Credit facilitiesCredit facilities$ $245,000 $ $245,000 
June 30, 2023June 30, 2023   
Financial Assets:Financial Assets:Financial Assets:
Certificates of Deposit Certificates of Deposit$— $1,212 $— $1,212  Certificates of Deposit$— $2,234 $— $2,234 
Financial Liabilities:Financial Liabilities:Financial Liabilities:
Revolving credit facility$— $115,000 $— $115,000 
Credit facilitiesCredit facilities$— $275,000 $— $275,000 
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NOTE 5.    LEASES
The Company determines if an arrangement is a lease, or contains 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 13 months to 1110 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 September 30, 2022,2023, and June 30, 2022,2023, the Company had operating lease assets of $46,452$41,564 and $46,869 and financing lease assets of $39 and $65,$43,662, respectively. At September 30, 2022,2023, total operating lease liabilities of $50,932$47,555 were comprised of current operating lease liabilities of $10,546$9,571 and noncurrent operating lease liabilities of $40,386, and total financing lease liabilities of $41 were all current liabilities.$37,984. At June 30, 2022,2023, total operating lease liabilities of $51,452$50,269 were comprised of current operating lease liabilities of $10,681$9,776 and noncurrent operating lease liabilities of $40,771, and total financing lease liabilities of $67 were all current financing lease liabilities.$40,493.
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 $33,478$28,077 and $31,006$34,973 as of September 30, 2022,2023, and June 30, 2022, 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) is included in the Company’s condensed consolidated balance sheet. Financing lease assets were recorded net of accumulated amortization of $276 and $255 as of September 30, 2022, and June 30, 2022,2023, respectively.
Operating lease costs for the three months ended September 30, 2023, and 2022, were $2,468 and 2021, were $3,059, and $3,432, respectively. Financing lease costs for the three months ended September 30, 2022 and 2021, were $21 and $28, respectively. Total operating and financing lease costs for the respective quarters included variable lease costs of approximately $928$544 and $399,$923, respectively. Operating and financing lease expense are included within cost of services, research and development, and selling, general &and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statementstatements of income.
For the three months ended September 30, 20222023, and 2021,2022, the Company had operating cash flows for payments on operating leases of $3,110$2,171 and $3,031,$3,110, and ROU assets obtained in exchange for operating lease liabilities of $2,296$0 and $272, respectively. Operating cash flows for interest paid on financing leases for the three months ended September 30, 2022 and 2021, were $22 and $29,$2,296, respectively.
As of September 30, 2022,2023, and June 30, 2022,2023, the weighted-average remaining lease term for the Company's operating leases was 7480 months and 7678 months, and the weighted-average discount rate was 2.60%2.09% and 2.58%2.14%, respectively. As of September 30, 2022, and June 30, 2022, the weighted-average remaining lease term for the Company's financing leases was 6 months and 9 months, respectively. The weighted-average discount rate for the Company's financing leases was 2.23% as of September 30, 2022, and 2.29% as of June 30, 2022.
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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 September 30, 2022*:2023:
Due Dates (fiscal year)Due Dates (fiscal year)Future Minimum Rental PaymentsDue Dates (fiscal year)Future Minimum Rental Payments
2023 (remaining period)$9,019 
202410,696 
2024 (remaining period)2024 (remaining period)$6,705 
202520257,952 20258,413 
202620267,046 20267,888 
202720276,265 20277,157 
202820286,771 
ThereafterThereafter14,296 Thereafter13,872 
Total lease paymentsTotal lease payments$55,274 Total lease payments$50,806 
Less: interestLess: interest(4,342)Less: interest(3,251)
Present value of lease liabilitiesPresent value of lease liabilities$50,932 Present value of lease liabilities$47,555 
*Financing leases were immaterial to the quarter, so a maturity ofFuture 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 September 30, 2022,2023, there were $6,128 ofno legally binding lease payments for leases signed but not yet commenced.
On September 30, 2023, the Company entered into an agreement with a third party to sublease a portion of its Elizabethtown, Kentucky facility. At September 30, 2023, there were $3,852 of legally binding lease payments due from the third party for the lease signed but not yet commenced. The commencement date of the sublease is October 1, 2023, and has a term of 57 months.
NOTE 6.    DEBT
Credit facilities
On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement.agreement that replaced a prior credit facility that was entered into on February 10, 2020. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company at any time until maturity. The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted Secured Overnight Financing Rate ("SOFR") term rate or (b) an alternate base rate (the highest of (a)(i) 0%, (b)(ii) the Prime Rate for such day, (c)(iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (d)(iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) 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 agreement 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 agreement. As of September 30, 2022,2023, the Company was in compliance with all such covenants. The amended and restated credit facility terminates August 31, 2027. There was $245,000$65,000 and $95,000 outstanding under the amended and restated credit facility at September 30, 2022.2023 and June 30, 2023, respectively.
Term loan facility
On June 30, 2022, there was a $115,000 outstanding balance onMay 16, 2023, the prior credit facility that wasCompany entered into on February 10, 2020. The priora term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $180,000. Borrowings under the term loan facility was a five-year senior, unsecured revolving credit facility. The prior credit facility allowed for borrowings of up to $300,000, which could be increased by the Company to $700,000 at any time until maturity. The prior credit facility borebear interest at a variable rate equal to (a) a rate based on a eurocurrencyan adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the U.S. Bank prime ratePrime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the eurocurrency rateAdjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one-month interest periodone month Interest Period on such day for dollarsDollars plus 1.0%0.75%), plus an applicable percentage in each case determined by the Company's leverage ratio. The priorterm loan credit facility wasagreement is guaranteed by certain subsidiaries of the Company and wasis subject to various financial covenants that requiredrequire the Company to maintain certain financial ratios as defined in the priorterm loan credit agreement. As of JuneSeptember 30, 2022,2023, the Company was in compliance with all such covenants. The priorterm loan credit facility's terminationagreement has a maturity date of May 16, 2025. There was February 10, 2025.$180,000 outstanding under the term loan at September 30, 2023 and June 30, 2023.
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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%1.0%. The credit line expires on April 30, 2023.2025. There was no balance outstanding at September 30, 2022,2023, or June 30, 2022.
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2023.
Interest
The Company paid interest of $1,333$3,509 and $234$1,333 during the three months ended September 30, 20222023, and 2021,2022, respectively.
NOTE 7.    INCOME TAXES
Provision for income taxesThe effective tax rate increased for the three months ended September 30, 2022,2023, compared to the three months ended September 30, 2021,2022, with an effective tax rate of 23.5%23.7% of income before income taxes, compared to 23.4%23.5% in the prior fiscal year quarter.
The Company paid income taxes, net of refunds, of $2,828$2,569 and $15,187$2,828 in the three months ended September 30, 20222023, and 2021,2022, respectively.
At September 30, 2022,2023, the Company had $9,586$12,676 of gross unrecognized tax benefits before interest and penalties, $8,532$11,051 of which, if recognized, would affect our effective tax rate. At September 30, 2022, theThe Company had accrued interest and penalties of $2,046 and $1,360 related to uncertain tax positions.positions at September 30, 2023, and 2022, respectively.
The U.S. federal income tax returns for fiscal 20192020 and all subsequent years remain subject to examination as of September 30, 2022,2023, under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of September 30, 2022,2023, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates potential changes due to lapsing of statutes of limitations, and examination closures could reduce the unrecognized tax benefits balance by $1,500 to $3,500$4,500 within twelve months of September 30, 2022.2023.
NOTE 8.    STOCK-BASED COMPENSATION
Our operating income for the three months ended September 30, 2023, and 2022, included $7,148 and 2021, included $6,998 and $6,071 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,
Stock option awards
Under the 2015 EIP, 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 summaryDuring the three months ended September 30, 2023, there were no options granted, forfeited, or exercised. At September 30, 2023, 12 options were outstanding at a weighted average exercise price of option plan activity under this plan is as follows:
 Number of SharesWeighted Average Exercise PriceAggregate
 Intrinsic
 Value
Outstanding July 1, 202212 $87.27  
Granted— —  
Forfeited— —  
Exercised— —  
Outstanding September 30, 202212 $87.27 $1,084 
Vested and Expected to Vest September 30, 202212 $87.27 $1,084 
Exercisable September 30, 202212 $87.27 $1,084 
$87.27 with an aggregate intrinsic value of $746.
At September 30, 2022,2023, there was no compensation cost yet to be recognized related to outstanding options. ForAll of the options are currently exercisable, thewith a weighted average remaining contractual term (remaining period of exercisability) of 2.75 years as of September 30, 2022, was 3.75 years.2023.
Restricted Stock Unit Awardsstock unit and performance unit awards
The Company issues unit awards under the 2015 EIP. The following table summarizes non-vested restrictedRestricted stock unit awards as(which are unit awards that have service requirements only and are not tied to performance measures) generally vest over a period of September 30, 2022:1 to 3 years. Performance unit awards are awards that have performance measures in addition to service requirements.

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Unit awardsUnitsWeighted Average Grant Date Fair ValueAggregate Intrinsic Value
Outstanding July 1, 2022303 $166.50 
Granted112 223.96 
Vested(20)170.87 
Forfeited(4)173.71 
Outstanding September 30, 2022391 $182.68 $71,376 
The following table summarizes non-vested restricted stock unit awards and performance awards as of September 30, 2023:
The 112
Unit awardsUnitsWeighted Average Grant Date Fair ValueAggregate Intrinsic Value
Outstanding July 1, 2023303 $190.08 
Granted1
142 180.61 
Vested(48)190.80 
Forfeited2
(28)201.87 
Outstanding September 30, 2023369 $185.42 $55,724 
1Granted includes restricted stock unit awards and performance unit awards at 100% achievement.
2Forfeited includes restricted stock unit awards and performance unit awards forfeited for service requirements not met and performance unit awards not settled due to underachievement of performance measures.
Of the 142 unit awards granted in the first quarter of fiscal 2023 had service requirements and performance measures, with 70 only having service requirements. The2024, 84 were restricted stock unit awards with only service requirementsand 58 were performance unit awards. The restricted stock 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 4223 of the performance unit awards granted in the first quarter of fiscal 2023 have performance measures along with service requirements. 17 of these performance and service requirement unit awards2024 were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. The payout at release of approximately half of these performance unit awards will be determined based on the Company's compound annual growth rate for revenue (excluding adjustments) for the three-year vesting period compared against goal thresholds as defined in the award agreement. The performance payout at release of the other half of these performance unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement. The other 2535 of the performance and service requirement unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design. Per the Company's award vesting and settlement provisions, the performance unit 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 2023.2024. 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.follows:
Monte Carlo award inputs:Fiscal 20232024
Compensation Peer Group:
Volatility29.425.6 %
Risk free interest rate2.964.48 %
Annual dividend based on most recent quarterly dividend$1.962.08
Dividend yield0.941.23 %
Beginning average percentile rank for TSR71.074.0 %
At September 30, 2022,2023, there was $37,428$38,164 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 1.251.46 years.
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NOTE 9.    EARNINGS PER SHARE
The following table reflects the reconciliation between basic and diluted earnings per share.
Three Months Ended September 30,Three Months Ended September 30,
20222021 20232022
Net IncomeNet Income$106,549 $102,114 Net Income$101,679 $106,549 
Common share information:Common share information:Common share information:
Weighted average shares outstanding for basic earnings per shareWeighted average shares outstanding for basic earnings per share72,896 74,016 Weighted average shares outstanding for basic earnings per share72,869 72,896 
Dilutive effect of stock options and restricted stock units242 126 
Dilutive effect of stock options, restricted stock units, and performance unitsDilutive effect of stock options, restricted stock units, and performance units145 242 
Weighted average shares outstanding for diluted earnings per shareWeighted average shares outstanding for diluted earnings per share73,138 74,142 Weighted average shares outstanding for diluted earnings per share73,014 73,138 
Basic earnings per shareBasic earnings per share$1.46 $1.38 Basic earnings per share$1.40 $1.46 
Diluted earnings per shareDiluted earnings per share$1.46 $1.38 Diluted earnings per share$1.39 $1.46 
Per share information is based on the weighted average number of common shares outstanding for the three months ended September 30, 20222023, and 2021.2022. Stock options, and restricted stock units, and performance units have been included in the calculation of earnings per share to the extent they are dilutive. There were nominal and 11 anti-dilutive stock options, or restricted stock units, or performance units excluded for the quarterthree months ended September 30, 2023 and 2022, and 22 were excluded for the quarter ended September 30, 2021.respectively.
NOTE 10.    BUSINESS ACQUISITIONSACQUISITION
Payrailz
On August 31, 2022, the Company completedacquired all of the acquisition ofequity interest in Payrailz, LLC ("Payrailz") for $229,563 paid in cash.. The final purchase price, is subject to afollowing customary post-closing adjustmentadjustments to the extent actual closing date working capital, cash, debt, and unpaid seller transaction expenses exceedsexceeded or iswere less than the amountamounts estimated at closing.closing, was $230,205. Pursuant to the merger agreement for the transaction, $48,500 of the purchase price was placed in an escrow account at the closing, consisting of $2,500 for any final purchase price adjustments owed by the sellers, which amount was released to the sellers on December 15, 2022, in connection with post-closing adjustments, and $46,000 for indemnification matters under the merger agreement.agreement, which amount was released to the sellers during the three months ended September 30, 2023.
The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by our revolving line of credit (Note 6) and cash generated from operations. Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions and experiences that enable money to be moved in the moment of need.
Management has completed a preliminary purchase price allocation and 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 August 31, 2022, and taking into account the post-closing purchase price adjustment described above, are set forth below:
Current assets$1,851 
Identifiable intangible assets119,868 
Deferred revenue(8,104)
Total other liabilities assumed(749)
Total identifiable net assets112,866 
Goodwill116,697117,339 
Net assets acquired$229,563230,205 
The goodwill of $116,697$117,339 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 Payrailz, together with the value of Payrailz's assembled workforce. The goodwill from this acquisition has been allocated to our Payments segment and $116,697$117,339 is expected to be deductible for income tax purposes.
Identifiable intangible assets from this acquisition consist of customer relationships of $6,109, computer software of $112,505, and other intangible assets of $1,254. The amortization period for acquired customer relationships, computer software, and other intangible assets is over a term of 10 to 15 years, for each.10 years, and 15 years, respectively.
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Current assets were inclusive of cash acquired of $577. The fair value of current assets acquired included accounts receivable of $978, none of which were expected to be uncollectible.
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Costs incurred related to the acquisition of Payrailz during the three months ended September 30, 2022, totaled $458 for administrative and 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 September 30, 2023 and 2022, included revenue of $2,896 and $738, respectively, and after-tax net loss of $5,059 and $1,870, respectively, resulting from Payrailz's operations.
The accompanying condensed consolidated statements of income for the three months ended September 30, 20222023, and 2021,2022, do not include any revenues and expenses related to this acquisition prior to the acquisition date. The following unaudited pro forma consolidated financial information for the three months ended September 30, 2023 and 2022, is presented as if this acquisition had occurred at the beginning of the prior period presented. The pro forma net income includes estimated incremental amortization expense of $1,957 and $2,935 for the three months ended September 30, 2022 and 2021, respectively.2022. In addition, this unaudited pro forma financial information is provided for illustrative purposes only and should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the acquisition had actually occurred during this period, or the results that may be obtained in the future as a result of the acquisition.
JKHYPro formaThree Months Ended
September 30,
Three Months Ended September 30,Three Months Ended September 30, 20232022
2022202120222021ActualPro forma
RevenueRevenue$529,202 $488,056 $530,829 $489,397 Revenue$571,368 $530,829 
Net IncomeNet Income106,549 102,114 102,012 97,098 Net Income101,679 102,012 
NOTE 11.    REPORTABLE SEGMENT INFORMATION

The Company is a leading provider of integrated computer systems that perform datatechnology solutions and payment processing (available for on-premise installations or JKHY cloud-based services) for banksservices primarily to community and credit unions.regional financial institutions.
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 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, hosted processing platforms, and services, including call center support, network security management, consulting, and monitoring that can be integrated with ourthe Company's Core solutions, and many can be used independently. The Corporate &and Other segment includes hardware revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating costsexpenses 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 between segments to reclassify revenue and cost of 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, 2021.2022. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed for the three months ended September 30, 2022, from Core to Complementary and Corporate and Other was $351 and $1,457, respectively, from Payments to Complementary and Corporate and Other was $6 and $1, respectively, from Complementary to Corporate and Other was $293, and from Corporate and Other to Complementary was $2. Cost of revenue reclassed for the three months ended September 30, 2022, from Core to Corporate and Other was $1,636, from Payments to Complementary and Corporate and Other was $2,969$91 and $511, respectively, and from Complementary to Corporate and Other was $734. Cost of revenue reclassed from Complementary and Corporate and Other to Payments was $1,356.

$423.
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Three Months EndedThree Months Ended
September 30, 2022September 30, 2023
CorePaymentsComplementaryCorporate & OtherTotalCorePaymentsComplementaryCorporate and OtherTotal
REVENUEREVENUEREVENUE
Services and SupportServices and Support$165,024 $18,659 $118,147 $18,319 $320,149 Services and Support$175,744 $19,903 $124,270 $22,288 $342,205 
ProcessingProcessing10,100 167,881 30,203 869 209,053 Processing10,695 179,455 37,096 1,917 229,163 
Total RevenueTotal Revenue175,124 186,540 148,350 19,188 529,202 Total Revenue186,439 199,358 161,366 24,205 571,368 
Cost of RevenueCost of Revenue72,240 101,155 58,437 66,429 298,261 Cost of Revenue75,927 108,826 62,275 75,974 323,002 
Research and DevelopmentResearch and Development32,993 Research and Development36,892 
Selling, General, and AdministrativeSelling, General, and Administrative57,225 Selling, General, and Administrative78,774 
Total ExpensesTotal Expenses388,479 Total Expenses438,668 
SEGMENT INCOMESEGMENT INCOME$102,884 $85,385 $89,913 $(47,241)SEGMENT INCOME$110,512 $90,532 $99,091 $(51,769)
OPERATING INCOMEOPERATING INCOME140,723 OPERATING INCOME132,700 
INTEREST INCOME (EXPENSE)INTEREST INCOME (EXPENSE)(1,424)INTEREST INCOME (EXPENSE)548 
INCOME BEFORE INCOME TAXESINCOME BEFORE INCOME TAXES$139,299 INCOME BEFORE INCOME TAXES$133,248 
Three Months EndedThree Months Ended
September 30, 2021September 30, 2022
CorePaymentsComplementaryCorporate & OtherTotalCorePaymentsComplementaryCorporate and OtherTotal
REVENUEREVENUEREVENUE
Services and SupportServices and Support$155,838 $17,063 $112,806 $11,787 $297,494 Services and Support$163,216 $18,652 $118,214 $20,067 $320,149 
ProcessingProcessing9,447 155,528 24,972 615 190,562 Processing10,100 167,881 30,203 869 209,053 
Total RevenueTotal Revenue165,285 172,591 137,778 12,402 488,056 Total Revenue173,316 186,533 148,417 20,936 529,202 
Cost of RevenueCost of Revenue66,902 94,582 54,417 60,735 276,636 Cost of Revenue70,604 100,553 58,105 68,999 298,261 
Research and DevelopmentResearch and Development26,754 Research and Development32,993 
Selling, General, and AdministrativeSelling, General, and Administrative51,071 Selling, General, and Administrative57,225 
Total ExpensesTotal Expenses354,461 Total Expenses388,479 
SEGMENT INCOMESEGMENT INCOME$98,383 $78,009 $83,361 $(48,333)SEGMENT INCOME$102,712 $85,980 $90,312 $(48,063)
OPERATING INCOMEOPERATING INCOME133,595 OPERATING INCOME140,723 
INTEREST INCOME (EXPENSE)INTEREST INCOME (EXPENSE)(241)INTEREST INCOME (EXPENSE)(1,424)
INCOME BEFORE INCOME TAXESINCOME BEFORE INCOME TAXES$133,354 INCOME BEFORE INCOME TAXES$139,299 




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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NOTE 12.     SUBSEQUENT EVENTS
None.

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 fiscal quarter ended September 30, 2022.2023.
OVERVIEW
Jack Henry & Associates, Inc. ("JKHY") is a well-rounded financial technology company and is a leading provider of technology solutions and payment processing services primarily forto community and regional financial services organizations. Itsinstitutions. Our solutions consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with assets up to $50 billion, core data processing solutions for credit unionunions of all sizes, and non-core highly specialized core-agnostic products and services that enable financial institutions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. JKHY'sOur integrated solutions are available for on-premise installation and delivery in our private and public cloud.
Our two primary revenue streams are "services and support" and "processing." Services and support includes: "private and public cloud" fees thatrevenue, which predominantly have contractincludes contracts with terms of seven years or longer at inception; "product delivery and services" revenue, which includes revenue from the sales of licenses, implementation services, deconversion fees,deconversions, consulting, and hardware; and "on-premise support" revenue, composed of maintenance fees whichcontracts primarily containwith annual contract terms. Processing revenue includes: "remittance" revenue from payment processing, remote capture, and ACH transactions; "card" fees,revenue, including card transaction processing and monthly fees; and "transaction and digital" revenue, which includes transaction and mobile processing fees.processing. 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.
RESULTS OF OPERATIONS
For the first quarter of fiscal 2023,2024, total revenue increased 8%, or $41,146,$42,166, compared to the same quarter in fiscal 2022. The2023. Total revenue less deconversion and acquisition revenues of $4,136 and $1,945, respectively, for the current fiscal quarter and less deconversion revenues of $4,518 for the prior fiscal year first quarter also results in an increase of 8%, or $40,603, quarter over quarter. This increase was primarily driven by growth in privatedata processing and public cloud,hosting, card, Jack Henry digital, including Banno, payment processing, transactionhardware, and digital, remittance, software usage, and implementationusage/subscription revenues.
Operating expenses increased 10%13%, or $50,189, for the first quarter of fiscal 20232024 compared to the first quarter of fiscal 2022. Increasing2023. Total operating expenses less deconversion expenses of $381, acquisition-related expenses of $4,182, and voluntary employee departure incentive payment (VEDIP) program expenses of $16,443 for the netcurrent fiscal quarter, and less deconversion expenses of $653 and removing the effects of deconversion fees of $653, acquisitions of $2,535, and the gain on disposal of assets, net, of $6,176 for the current fiscal quarter and reducing operating expenses for the effects of deconversion fees of $540 for the prior fiscal year first quarter, results in an 11% increase for the firstof 6%, or $23,661, quarter of fiscal 2023 compared to the same quarter a year ago.over quarter. This increase in operating expenses was primarily driven by higher personnel costs, increasedincluding commissions expenses, and higher direct costs in line with related revenue, and increased travel expenses.as revenues increased.
Operating income increased 5%decreased 6% for the first quarter of fiscal 20232024 compared to the first quarter of fiscal 2022. Reducing2023. Total operating income for the effectsless deconversion operating income of deconversion fees$3,755 plus an acquisition operating loss of $3,865$2,237 and VEDIP program expenses of $16,443 for the current fiscal quarter, and $3,184 for the prior fiscal year quarterless deconversion operating income of $3,865 and forremoving the effects of acquisitions of $1,797 and the gain on disposal of assets, net, of $6,176 for the currentprior fiscal year first quarter, results in a 2%an increase for the firstof 13%, or $16,943, quarter of fiscal 2023 compared to the same quarter a year ago.over quarter. 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 5% for the first quarter of fiscal 2023 compared to the prior fiscal year first quarter. The effective tax rate for the first quarter of fiscal 2023 was 23.5% compared to 23.4% for the same quarter a year ago.
Due to the above changes, net income increased 4% for the first quarter of fiscal 2023 compared to the first quarter of fiscal 2022.
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We move into the second quarter of fiscal 20232024 with optimism following strong performance in the first quarter. Significantsignificant portions of our business continuecontinuing to come from recurring revenues and our sales pipeline also remainsremaining encouraging. Our customers continue to face regulatory and operational challenges which our products and services address, and we believe they have a great 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.
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A detailed discussion of the major components of the results of operations for the three months ended September 30, 2023, follows. On August 31, 2022, follows. the Company acquired all of the equity interest in Payrailz, LLC ("Payrailz"). Payrailz ("acquisition") related revenue and operating expenses mentioned in the discussion below are for the first two months of the quarter ended September 30, 2023.
Discussions compare the current fiscal year's three months ended September 30, 2022,2023, to the prior fiscal year's three months ended September 30, 2021.2022.
REVENUE
Services and SupportThree Months Ended September 30,%
Change
 20222021 
Services and Support$320,149 $297,494 8 %
Percentage of total revenue60 %61 % 
Services and SupportThree Months Ended September 30,%
Change
 20232022 
Services and Support$342,205 $320,149 7 %
Percentage of total revenue60 %60 % 
Services and support revenue increased 8%7% for the first quarter of fiscal 20232024 compared to the same quarter a year ago. Reducing services and support revenue for deconversion fee revenue from each quarter, which was $4,518$4,136 for the current fiscal quarter and $3,724$4,518 for the prior fiscal year quarter and for the effectsacquisition revenue of acquisitions of $24$2 for the current fiscal quarter also results in growth of 7% quarter over quarter. This increase was primarily driven by growth in clouddata processing software usage, and implementation feehosting revenues, as well as an increase in user group fee revenue. Growth innew customers are added and existing customers migrate from on-premise to outsourcing, and increased hardware and software usage reflects a continuing shift of customers to our time-based license model.usage/subscription revenues.
ProcessingThree Months Ended September 30,%
Change
 20222021 
Processing$209,053 $190,562 10 %
Percentage of total revenue40 %39 % 

ProcessingThree Months Ended September 30,%
Change
 20232022 
Processing$229,163 $209,053 10 %
Percentage of total revenue40 %40 % 
Processing revenue increased 10% for the first quarter of fiscal 20232024 compared to the same quarter last fiscal year. Reducing processing revenue for the effectsacquisition revenue of acquisitions of $714$1,943 for the current fiscal quarter results in growth of 9% quarter over quarter. This increase was primarily driven by highergrowth in card processing andrevenue from expanding transaction volumes, Jack Henry digital, revenue, including Banno, as well as payment processing fees, including iPay, primarily due to expandingactive users increased and volumes complemented by growth in theexpanded, other processing revenue components, quarter over quarter.revenues, and remote capture and ACH revenue.

OPERATING EXPENSES
Cost of RevenueThree Months Ended September 30,%
Change
 20222021 
Cost of Revenue$298,261 $276,636 8 %
Percentage of total revenue56 %57 % 

Cost of RevenueThree Months Ended September 30,%
Change
 20232022 
Cost of Revenue$323,002 $298,261 8 %
Percentage of total revenue57 %56 % 
Cost of revenue for the first quarter of fiscal 20232024 increased 8% over the prior fiscal year first quarter. Reducing cost of revenue for the effects of deconversion feescosts from each quarter, which were $411$270 for the current fiscal year quarter and $337$411 for the prior fiscal year quarter, and increasing costfor acquisition costs of revenue for the net effects of acquisitions of $1,539$3,334 from the current fiscal year quarter, results in a 7% increase quarter over quarter. This increase was primarily due to higher direct costs, associatedconsistent with our card processing third-party platform,increases in the related revenue, higher personnel costs, including benefits expenses, and increased internal licenses and fees, and increased amortization of intangible assets at September 30, 2022, compared to the same period a year ago. The increases in cost of revenue were primarily due to organic growth within our product lines.fees. Cost of revenue decreasedincreased 1% compared to the prior fiscal year quarter as a percentage of total revenue.
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Research and DevelopmentResearch and DevelopmentThree Months Ended September 30,%
Change
Research and DevelopmentThree Months Ended September 30,%
Change
20222021  20232022 
Research and DevelopmentResearch and Development$32,993 $26,754 23 %Research and Development$36,892 $32,993 12 %
Percentage of total revenuePercentage of total revenue6 %% Percentage of total revenue6 %% 
Research and development expense increased 23%12% for the first quarter of fiscal 20232024 over the prior fiscal year first quarter. Reducing research and development expense for the effectsacquisition costs of acquisitions of $332$656 for the current fiscal quarter, results in a 22%10% increase quarter over quarter. This increase was primarily due to an increase in personnel costs, net of capitalization, quarter over quarter.including benefits expenses primarily resulting from a 2% headcount increase in the trailing twelve months, partially related to Jack Henry Platform. Research and development expense for the quarter increased 1%remained consistent compared to the prior fiscal year quarter as a percentage of total revenue.
Selling, General, and AdministrativeThree Months Ended September 30,%
Change
 20222021 
Selling, General, and Administrative$57,225 $51,071 12 %
Percentage of total revenue11 %10 % 

Selling, General, and AdministrativeThree Months Ended September 30,%
Change
 20232022 
Selling, General, and Administrative$78,774 $57,225 38 %
Percentage of total revenue14 %11 % 
Selling, general, and administrative expense increased 12%38% in the first quarter of fiscal 20232024 over the same quarter in the prior fiscal year. Reducing selling, general, and administrative expense for the effects of deconversion feescosts from each quarter, which were $242$111 for the current fiscal year quarter and $202$243 for the prior fiscal year quarter, for acquisition costs of $192 and increasing selling, general, and administrative expenseVEDIP program expenses of $16,443 for the current fiscal year quarter, and removing the effect of the gain on disposal of assets, net, effects of acquisitions and gain/loss of $5,512 for$6,176 in the prior fiscal year quarter, results in a 23% increase2% decrease quarter over quarter. This increasedecrease was primarily due to higher travel expenses and personnel costs, increased consulting and other professional services, and an increase in meetings and trainings.a continued focus on controlling costs. Selling, general, and administrative expense increased 1%3% as a percentage of total revenue this fiscal quarter versus the prior fiscal year quarter.
INTEREST INCOME (EXPENSE)Three Months Ended September 30,%
Change
 20222021 
Interest Income$152 $2,071 %
Interest Expense$(1,576)$(248)535 %

INTEREST INCOME (EXPENSE)Three Months Ended September 30,%
Change
 20232022 
Interest Income$4,745 $152 3,022 %
Interest Expense$(4,197)$(1,576)166 %
Interest income fluctuated due to changes in invested balances and yieldsinterest earned on invested balances during the first quarter of fiscal 20232024 compared to the same periodquarter a year ago. Interest expense increased when compared to the prior fiscal year quarter due to recent increases in prevailing interest rate fluctuations, length of borrowing time,rates and amounts borrowed. There was a $245,000 outstanding balance under the credit and term loan facilities at September 30, 2023, and $245,000 outstanding balance under the credit facility at September 30, 2022, and $65,000 outstanding balance at September 30, 2021. The increase in the outstanding balance was primarily due to funding the Payrailz acquisition on August 31, 2022.
PROVISION FOR INCOME TAXESThree Months Ended September 30,%
Change
 20222021
Provision for Income Taxes$32,750 $31,240 5 %
Effective Rate23.5 %23.4 %

The change in effective tax rate was minimal for the first quarter
PROVISION FOR INCOME TAXESThree Months Ended September 30,%
Change
 20232022
Provision for Income Taxes$31,569 $32,750 (4)%
Effective Rate23.7 %23.5 %

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Table of fiscal 2023 compared to the same quarter a year ago.Contents
NET INCOMENET INCOMEThree Months Ended September 30,
%
Change
NET INCOMEThree Months Ended September 30,
%
Change
20222021 20232022
Net incomeNet income$106,549 $102,114 4 %Net income$101,679 $106,549 (5)%
Diluted earnings per shareDiluted earnings per share$1.46 $1.38 6 %Diluted earnings per share$1.39 $1.46 (4)%
Net income increased 4%decreased 5% to $106,549,$101,679, or $1.46$1.39 per diluted share, for the first quarter of fiscal 20232024 compared to $102,114,$106,549, or $1.38$1.46 per diluted share, in the same quarter of fiscal 2022.2023. Net income decreased primarily due to VEDIP program expenses partially offset by the organic growth in our lines of revenue and a decrease in the provision for income taxes in the first quarter of fiscal 2024 compared to the same quarter last fiscal year.
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REPORTABLE SEGMENT DISCUSSION
The Company is a leading provider of technology solutions and payment processing services primarily forto community and regional financial services organizations.institutions.
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 costsexpenses not directly attributable to the other three segments, except for items that are deemed unassigned and excluded from any segment.
.
Core
Three Months Ended September 30,% Change
 20222021
Revenue$175,124 $165,285 %
Cost of Revenue$72,240 $66,902 %
Immaterial adjustments have been made between segments to reclassify revenue and cost of revenue that was recognized for the three months ended September 30, 2022. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed for the three months ended September 30, 2022, from Core to Complementary and Corporate and Other was $351 and $1,457, respectively, from Payments to Complementary and Corporate and Other was $6 and $1, respectively, from Complementary to Corporate and Other was $293, and from Corporate and Other to Complementary was $2. Cost of revenue reclassed for the three months ended September 30, 2022, from Core to Corporate and Other was $1,636, from Payments to Complementary and Corporate and Other was $91 and $511, respectively, and from Complementary to Corporate and Other was $423.
CoreThree Months Ended September 30,% Change
 20232022
Revenue$186,439 $173,316 %
Cost of Revenue$75,927 $70,604 %
Revenue in the Core segment increased 6%8% and cost of revenue increased 8% for the three months ended September 30, 2022,2023, compared to the three months ended September 30, 2021.2022. This increase in Core revenue over the prior fiscal year quarter was primarily driven by the growth in clouddata processing and software usagehosting revenues. The cost of revenue increase was primarily driven by higher direct costs consistent with increases in revenue. Core segment deconversion costs did not significantly affect Core revenue or cost of revenue increases quarter over quarter. Cost of revenue increased 8% quarter over quarter primarily due to increased direct support costs and higher personnel costs. Cost of revenue increased 1%remained consistent as a percentage of revenue for the first quarter of fiscal 20232024 compared to the same quarter of fiscal 2022.2023.
PaymentsPaymentsPaymentsThree Months Ended September 30,% Change
Three Months Ended September 30,% Change 20232022
20222021
RevenueRevenue$186,540 $172,591 %Revenue$199,358 $186,533 %
Cost of RevenueCost of Revenue$101,155 $94,582 %Cost of Revenue$108,826 $100,553 %
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Revenue in the Payments segment increased 7% and cost of revenue increased 8% for the first quarter of fiscal 20232024 compared to the equivalent quarter of the prior fiscal year. Reducing Payments revenue for deconversion fee revenue in both periods,quarters, which totaled $1,006 for the first quarter of fiscal 2024 and $1,435 for the first quarter of fiscal 2023 and $448for revenue from the acquisition of $1,945 from the current fiscal year first quarter, results in a 6% increase quarter over quarter. This increase was primarily due to higher card revenue, primarily from expanding transaction volumes, and higher remote capture and ACH revenue, primarily from expanding volumes and new customer revenue. Reducing Payments cost of revenue for deconversion costs in both quarters, which totaled $47 for the first quarter of fiscal 20222024 and $64 for the first quarter of fiscal 2023, and for cost of revenue from acquisitionsacquisition of $738$3,314 from the current fiscal year first quarter, results in a 7%5% increase quarter over quarter. This Payments revenue growthincrease was primarily due to increased card and remittance fee revenues within processing. Cost of revenue increased 7% quarter over quarter primarily due to increasedhigher direct costs, related to our credit and debit card third-party processing platform in lineconsistent with associated revenues, and higher personnel costs.costs, including benefits expenses. Cost of revenue as a percentage of revenue increased 1% for the first quarter of fiscal 2024 compared to the same quarter of fiscal 2023.
ComplementaryThree Months Ended September 30,% Change
 20232022
Revenue$161,366 $148,417 %
Cost of Revenue$62,275 $58,105 %
Revenue in the Complementary segment increased 9% and cost of revenue increased 7% for the first quarter of fiscal 2024 compared to the equivalent quarter of the prior fiscal year. The revenue increase was primarily driven by higher Jack Henry digital revenue, as active users increased and volumes expanded, and hosting revenues, as new customers were added, and existing customers continued to migrate from on-premise to outsourcing. The cost of revenue increase was primarily due to increased direct costs consistent with associated revenues and higher personnel costs, including benefits expenses. Complementary segment deconversion costs did not significantly affect Complementary revenue or cost of revenue increases quarter over quarter. Cost of revenue as a percentage of revenue decreased 1% for the first quarter of fiscal 20232024 compared to the same quarter of fiscal 2022.2023.
Complementary
Three Months Ended September 30,% Change
Corporate and OtherCorporate and OtherThree Months Ended September 30,% Change
20222021 20232022
RevenueRevenue$148,350 $137,778 %Revenue$24,205 $20,936 16 %
Cost of RevenueCost of Revenue$58,437 $54,417 %Cost of Revenue$75,974 $68,999 10 %
Revenue in the Complementary segment increased 8% for the first quarter of fiscal 2023 compared to the equivalent quarter of the prior fiscal year. This Complementary revenue growth was primarily driven by increased Jack Henry digital and cloud processing revenues. Cost of revenue increased 7% quarter over quarter primarily
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due to increased direct support and personnel costs. Cost of revenue as a percentage of revenue remained consistent for the first quarter of fiscal 2023 compared to the same quarter of fiscal 2022.
Corporate and Other
Three Months Ended September 30,% Change
 20222021
Revenue$19,188 $12,402 55 %
Cost of Revenue$66,429 $60,735 %
Revenue in the Corporate and Other segment increased 55% for the first quarter of fiscal 2023 compared to the equivalent quarter of the prior fiscal year. The increase quarter over quarter was primarily due to higher user group and hardware revenues. Revenue classified in the Corporate and Other segment includes revenues from other products and services and hardware not specifically attributed to any of the other three segments. Revenue in the Corporate and Other segment increased 16% for the first quarter of fiscal 2024 compared to the equivalent quarter of the prior fiscal year. This increase was primarily due to higher hardware revenues quarter over quarter. Corporate and Other segment deconversion revenue did not significantly affect Corporate and Other revenue increase quarter over quarter.
Cost of revenue for the Corporate and Other segment includes operating costsexpenses not directly attributable to any of the other three segments. The cost of revenue in the first quarter of fiscal 20232024 increased 9%10% when compared to the prior fiscal year quarter. Corporate and Other segment deconversion and acquisition costs did not significantly affect the Corporate and Other cost of revenue increase quarter primarily due to higher internal licenses and fees, personnel costs, and hardware costs.over quarter.

LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and cash equivalents decreasedincreased to $31,970$31,467 at September 30, 2022,2023, from $48,787$12,243 at June 30, 2022.2023.
23


The following table summarizes net cash from operating activities in the statement of cash flows:
Three Months EndedThree Months Ended
September 30,September 30,
2022202120232022
Net incomeNet income$106,549 $102,114 Net income$101,679 $106,549 
Non-cash expensesNon-cash expenses34,139 56,498 Non-cash expenses46,094 34,139 
Change in receivablesChange in receivables101,509 53,404 Change in receivables72,519 101,509 
Change in deferred revenueChange in deferred revenue(65,130)(60,662)Change in deferred revenue(66,322)(65,130)
Change in other assets and liabilitiesChange in other assets and liabilities(40,236)(44,805)Change in other assets and liabilities3,169 (40,236)
Net cash provided by operating activitiesNet cash provided by operating activities$136,831 $106,549 Net cash provided by operating activities$157,139 $136,831 
Cash provided by operating activities for the first three months of fiscal 20232024 increased 28%15% compared to the same period last year.year primarily due to a lower decrease in accrued expenses and a lower increase in prepaid expenses partially offset by a lower decrease in trade receivables quarter over quarter. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, for capital expenditures, and acquisitions.
Cash used in investing activities for the first three months of fiscal 20232024 totaled $249,594$50,526 and included: $228,986 for an acquisition; $38,715$41,486 for the ongoing enhancementsenhancement and development of existing and new product and service offerings; capital expenditures on facilities and equipment of $7,737;$7,612; and $408$2,280 for the purchase and development of internal use software. This wasCash uses were partially offset by proceeds from the sale of assets of $26,252.$852. Cash used in investing activities for the first three months of fiscal 20222023 totaled $46,451$249,594 and included $35,971included: $228,986 for an acquisition; $38,715 for the development of software; $7,737 for capital expenditures of $9,273;expenditures; and $1,221$408 for the purchase and development of internal use software. This wasCash uses were partially offset by proceeds from the sale of assets of $14.$26,252.
Financing activities providedused cash of $95,946$87,389 for the first three months of fiscal 2024 and included payments on credit facilities of $165,000, dividends paid to stockholders of $37,863, and purchases of treasury stock of $20,000. Cash uses were partially offset by borrowings on credit facilities of $135,000 and $474 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation. Financing activities used cash of $95,946 in the first three months of fiscal 2023 including repayments on credit facilities and financing leases of $150,022, and $35,709 for the payment of dividends. These uses of cash were partially offset by borrowings on credit facilities of $280,000 and $1,677 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation. This was partially offset by payments on credit facilities of $150,022 and dividends paid to stockholders of $35,709. Financing activities used cash of $66,839 in the first three months of fiscal 2022 including $35,027 for repayments on credit facilities and financing leases and $34,036 for the payment of dividends. This was partially offset by $2,224 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation.
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Capital Requirements and Resources
The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $7,737$7,612 and $9,273$7,737 for the three months ended September 30, 2022,2023, and September 30, 2021,2022, 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 20232024 are not expected to exceed $64,000be approximately $77,000 and have been or will be funded from our credit facilities and cash generated by operations.
In July 2023, the Company conducted a voluntary separation program for certain eligible employees that includes a voluntary employee departure incentive payment (VEDIP) for the eligible employees who chose to participate in the program. The Company incurred related expenses of $16,443 in the first quarter of 2024 and will make payments associated with the program from July 2023 through December 2023.
On August 31, 2022, the Company acquired all of the equity interest of Payrailz for $229,563 paid in cash. The purchase price is subject to a customary post-closing adjustment to the extent actual closing date working capital, cash, debt and unpaid seller transaction expenses exceeds or is less than the amount estimated at closing. Pursuant to the merger agreement for the transaction, $48,500 of the purchase price was placed in an escrow account at the closing for final purchase price adjustments and indemnification matters under the merger agreement.
The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by our revolving line of credit and cash generated from operations. Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions and experiences that enable money to be moved in the moment of need.
On September 29, 2022,8, 2023, the Company entered into an agreement with Twilio Inc., whicha contract to purchase fixed assets that added contractual spend obligations of $34,191 for the period October 1, 2022,of December 15, 2023, through SeptemberJune 30, 2027, of $16,350.2025. This commitment is in addition to the commitments discussed in our Annual Report on Form 10-K for the year ended June 30, 2022.2023.
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 September 30, 2022, and June 30, 2022,2023, there were 31,04331,323 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,9483,667 additional shares. The total cost of treasury shares at September 30, 2022,2023, was $1,852,118, and the Company repurchased 129 shares during the first three months of fiscal 2024. At June 30, 2022,2023, there were 31,194 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,796 additional shares. The total cost of treasury shares at June 30, 2023, was $1,807,118.$1,832,118 and the Company repurchased no shares during the first three months of fiscal 2023.
On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. The IRA made several changes to the U.S. tax code including, but not limited to, a 1% excise tax on net stock repurchases and tax incentives to promote clean energy. The Company does not expect the IRA to have a material impact on its financial statements.
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Credit facilities
On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement.agreement that replaced a prior credit facility that was entered into on February 10, 2020. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company to $1,000,000 at any time until maturity. The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted Secured Overnight Financing Rate ("SOFR") term rate or (b) an alternate base rate (the highest of (a)(i) 0%, (b)(ii) the Prime Rate for such day, (c)(iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (d)(iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) 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 agreement 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 agreement. As of September 30, 2022,2023, the Company was in compliance with all such covenants. The amended and restated credit facility terminates August 31, 2027. There was $245,000$65,000 and $95,000 outstanding under the amended and restated credit facility at September 30, 2022.2023 and June 30, 2023, respectively.
Term loan facility
On June 30, 2022, there was a $115,000 outstanding balance onMay 16, 2023, the prior credit facility that wasCompany entered into on February 10, 2020. The priora term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $180,000. Borrowings under the term loan facility was a five-year senior, unsecured revolving credit facility. The credit facility allowed for borrowings of up to $300,000, which could be increased by the Company to $700,000 at any time until maturity. The prior credit facility borebear interest at a variable rate equal to (a) a rate based on a eurocurrencyan adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the U.S. Bank prime ratePrime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the eurocurrency rateAdjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one-month interest periodone month Interest Period on such day for dollarsDollars plus 0.75%), plus 1.0%, plus an applicable percentage in each case determined by the Company's leverage ratio. The priorterm loan credit facility wasagreement is guaranteed by certain subsidiaries of the Company and wasis subject to various financial covenants that requiredrequire the Company to maintain certain financial ratios as defined in the priorterm loan credit agreement. As of JuneSeptember 30, 2022,2023, the Company was in compliance with all such covenants. The priorterm loan credit facility's terminationagreement has a maturity date of May 16, 2025. There was February 10, 2025.

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The increase in$180,000 outstanding under the outstanding credit facility balance of $130,000term loan at September 30, 2022, compared to2023 and June 30, 2022, was primarily due to the acquisition of Payrailz during the three months ended September 30, 2022. This borrowing is expected to contribute to the increase in interest expense during fiscal 2023.
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. At2025. There was no balance outstanding at September 30, 2022, and2023, or June 30, 2022, no amount was outstanding.2023.

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 had $245,000 outstanding debt with variable interest rates as of September 30, 2022,2023, and a 1% increase in our borrowing rate would increase our annual interest expense by $2,450.

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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 (required in Exchange Act Rules 13a-15(b) and 15d-15(b)), 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. For this purpose, disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed under the Exchange Act is 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 September 30, 2022,2023, there were no changes in the Company's internal control over financial reporting which were identified in connection with management’s evaluation required by Rules 13a-15(d) and 15d-15(d) 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
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The following shares of the Company were repurchased during the quarter ended September 30, 2022:2023:
Total Number of Shares PurchasedAverage Price of ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans
Maximum Number of Shares that May Yet Be Purchased Under the Plans (1)
July 1- July 31, 2022— — — 3,947,713 
August 1- August 31, 2022— $— — 3,947,713 
September 1- September 30, 2022— — — 3,947,713 
Total3,947,713
Total Number of Shares PurchasedAverage Price of ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans
Maximum Number of Shares that May Yet Be Purchased Under the Plans (1)
July 1 - July 31, 2023— — — 3,796,265 
August 1 - August 31, 2023107,227 $155.59 107,227 3,689,038 
September 1 - September 30, 202321,541 153.97 21,541 3,667,497 
Total128,768 $155.32 128,768 3,667,497 
(1) Total stock repurchase authorizations approved by the Company's Board of Directors as of May 17,14, 2021, were for 35 million35,000,000 shares. Under these authorizations, the Company has repurchased and not re-issued 31,042,90331,323,119 shares and has repurchased and re-issued 9,384 shares. These authorizations have no specific dollar or share price targets and no expiration dates.

ITEM 5. OTHER INFORMATION

Rule 10b-5(1) Trading Plans

During the three months ended September 30, 2023, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
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ITEM 6.     EXHIBITS


10.72     JackHenry & Associates, Inc. Executive Severance Plan, dated effective as of July 26, 2022 attached as Exhibit 10.72 to the Company’s Current Report on Form 8-K filed July 29, 2022.

10.73     Amended and Restated Credit Agreement, dated as of August 31, 2022 among Jack Henry & Associates, Inc., as Borrower, the lenders parties thereto, U.S. Bank National Association, as Administrative Agent, LC Issuer and Swing Line Lender, and certain other financial institutions as co-syndication agents and joint lead arrangers and joint book runners attached as Exhibit 10.73 to the Company’s Current Report on Form 8-K filed September 1, 2022.

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 September 30, 2022,2023, and June 30, 2022,2023, (ii) the Condensed Consolidated Statements of Income for the three months ended September 30, 20222023, and 2021,2022, (iii) the Condensed Consolidated Statements of Changes in Shareholders' Equity for the three months ended September 30, 20222023, and 2021,2022, (iv) the Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 20222023, and 2021,2022, and (v) Notes to Condensed Consolidated Financial Statements.
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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:November 9, 20222023/s/ David B. Foss
David B. Foss
Chief Executive Officer and Board Chair
Date:November 9, 20222023/s/ Mimi L. Carsley
Mimi L. Carsley
Chief Financial Officer and Treasurer

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