Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HENRY JACK & ASSOCIATES INC | |
Entity Central Index Key | 779,152 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 78,884,710 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 54,001 | $ 148,313 |
Receivables, net | 137,406 | 245,387 |
Income tax receivable | 8,236 | 2,753 |
Prepaid expenses and other | 70,075 | 69,096 |
Deferred costs | 40,252 | 27,950 |
Total current assets | 309,970 | 493,499 |
PROPERTY AND EQUIPMENT, net | 298,023 | 296,332 |
OTHER ASSETS: | ||
Deferred Costs, Noncurrent | 98,717 | 96,423 |
Computer software, net of amortization | 228,087 | 191,541 |
Other non-current assets | 58,944 | 52,432 |
Other intangible assets, net of amortization | 37,724 | 34,038 |
Goodwill | 556,256 | 550,366 |
Total other assets | 1,094,629 | 1,047,004 |
Total assets | 1,702,622 | 1,836,835 |
CURRENT LIABILITIES: | ||
Accounts payable | 7,060 | 9,933 |
Accrued expenses | 69,721 | 78,962 |
Accrued income taxes | 0 | 5,543 |
Deferred income tax liability | 0 | 7,034 |
Notes payable and current maturities of long term debt | 213 | 2,595 |
Deferred revenues | 202,270 | 339,544 |
Total current liabilities | 279,264 | 443,611 |
LONG TERM LIABILITIES: | ||
Non-current deferred revenues | 180,901 | 192,443 |
Non-current deferred income tax liability | 183,881 | 150,223 |
Debt, net of current maturities | 100,000 | 50,102 |
Other long-term liabilities | 9,709 | 8,922 |
Total long term liabilities | 474,491 | 401,690 |
Total liabilities | 753,755 | 845,301 |
STOCKHOLDERS' EQUITY | ||
Preferred stock - $1 par value; 500,000 shares authorized, none issued | 0 | 0 |
Common stock - $0.01 par value; 250,000,000 shares authorized; 102,839,430 shares issued at March 31, 2016; 102,695,214 shares issued at June 30, 2015 | 1,028 | 1,027 |
Additional paid-in capital | 434,430 | 424,536 |
Retained earnings | 1,369,003 | 1,266,443 |
Less treasury stock at cost; 23,962,117 shares at March 31, 2016; 21,842,632 shares at June 30, 2015 | (855,594) | (700,472) |
Total stockholders' equity | 948,867 | 991,534 |
Total liabilities and equity | 1,702,622 | 1,836,835 |
Customer Relationships [Member] | ||
OTHER ASSETS: | ||
Customer Relationships, Net of Amortization | $ 114,901 | $ 122,204 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Mar. 31, 2016 | Jun. 30, 2015 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, issued shares | 102,839,430 | 102,695,214 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 500,000 | 500,000 |
Preferred stock, issued shares | 0 | 0 |
Treasury Stock, Shares | 23,962,117 | 21,842,632 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
REVENUE | ||||
License | $ 292 | $ 569 | $ 2,530 | $ 1,563 |
Support and service | 319,649 | 296,896 | 947,615 | 882,017 |
Hardware | 13,245 | 12,244 | 37,532 | 38,897 |
Total revenue | 333,186 | 309,709 | 987,677 | 922,477 |
COST OF SALES | ||||
License Costs | 193 | 285 | 873 | 1,002 |
Cost of support and service | 184,527 | 168,457 | 541,230 | 503,925 |
Cost of hardware | 9,553 | 9,152 | 26,279 | 28,111 |
Total cost of sales | 194,273 | 177,894 | 568,382 | 533,038 |
GROSS PROFIT | 138,913 | 131,815 | 419,295 | 389,439 |
OPERATING EXPENSES | ||||
Selling and marketing | 22,732 | 21,674 | 66,714 | 65,512 |
Research and development | 19,854 | 17,522 | 57,269 | 51,995 |
General and administrative | 16,497 | 15,417 | 50,157 | 43,442 |
Total operating expenses | 59,083 | 54,613 | 174,140 | 160,949 |
OPERATING INCOME | 79,830 | 77,202 | 245,155 | 228,490 |
INTEREST INCOME (EXPENSE) | ||||
Interest income | 54 | 33 | 258 | 118 |
Interest expense | (486) | (669) | (983) | (1,273) |
Total interest income (expense) | (432) | (636) | (725) | (1,155) |
INCOME BEFORE INCOME TAXES | 79,398 | 76,566 | 244,430 | 227,335 |
PROVISION FOR INCOME TAXES | 25,515 | 25,854 | 79,833 | 76,656 |
NET INCOME | $ 53,883 | $ 50,712 | $ 164,597 | $ 150,679 |
Earnings Per Share | ||||
Basic earnings per share | $ 0.68 | $ 0.63 | $ 2.07 | $ 1.85 |
Basic weighted average shares outstanding | 78,805 | 80,880 | 79,608 | 81,502 |
Diluted earnings per share | $ 0.68 | $ 0.63 | $ 2.06 | $ 1.84 |
Diluted weighted average shares outstanding | 79,167 | 81,094 | 79,891 | 81,773 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 164,597 | $ 150,679 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 38,106 | 41,023 |
Amortization | 57,013 | 48,063 |
Change in deferred income taxes | 24,695 | (382) |
Excess tax benefits from stock-based compensation, Operating Activities | (338) | (4,156) |
Expense for stock-based compensation | 8,213 | 7,342 |
Gain/loss on disposal of assets | (48) | (5,045) |
Changes in operating assets and liabilities: | ||
Change in receivables | 108,172 | 86,626 |
Change in prepaid expenses, deferred costs and other | (22,578) | (34,386) |
Change in accounts payable | (2,873) | (3,877) |
Change in accrued expenses | (8,114) | 666 |
Change in income taxes | (9,927) | 16,875 |
Change in deferred revenues | (149,885) | (120,941) |
Net cash from operating activities | 207,033 | 182,487 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payment for acquisitions, net of cash acquired | (8,275) | 0 |
Capital expenditures | (43,300) | (35,867) |
Proceeds from sale of assets | 2,797 | 8,266 |
Internal use software | (10,157) | (10,266) |
Computer software developed | (74,662) | (56,465) |
Net cash from investing activities | (133,597) | (94,332) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on credit facilities | 100,000 | 70,000 |
Repayments on credit facilities | (52,484) | (6,033) |
Debt acquisition costs | 0 | 901 |
Purchase of treasury stock | (155,122) | (112,803) |
Dividends paid | (62,037) | (56,183) |
Excess tax benefits from stock-based compensation, Financing Activities | 338 | 4,156 |
Proceeds from issuance of common stock upon exercise of stock options | 1 | 456 |
Minimum tax withholding payments related to option exercises | (2,561) | (7,948) |
Proceeds from sale of common stock, net | 4,117 | 3,524 |
Net cash from financing activities | (167,748) | (105,732) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (94,312) | (17,577) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 148,313 | 70,377 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 54,001 | $ 52,800 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies [Text Block] | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Company Jack Henry & Associates, Inc. and subsidiaries (“JHA” or the “Company”) is a provider of integrated computer systems and services that has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide together with computer equipment (hardware), by providing the conversion and implementation services for financial institutions to utilize JHA systems, and by providing other related services. JHA also provides continuing support and services to customers using in-house or outsourced systems. Consolidation The condensed consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated. Comprehensive Income Comprehensive income for the three and nine months ended March 31, 2016 and 2015 equals the Company’s net income. 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 short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2016 , there were 23,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 6,028 additional shares. The total cost of treasury shares at March 31, 2016 is $855,594 . During the first nine months of fiscal 2016 , the Company repurchased 2,120 treasury shares for $155,122 . At June 30, 2015 , there were 21,843 shares in treasury stock and the Company had authority to repurchase up to 8,148 additional shares. Dividends declared per share were $0.28 and $0.25 , for the three months ended March 31, 2016 and 2015 , respectively. For the nine months ended March 31, 2016 and 2015 , dividends declared per share were $0.78 and $0.69 , respectively. 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 and in accordance with accounting principles generally accepted in the United States of America 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, 2015 . 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, 2015 . 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 the financial position of the Company as of March 31, 2016 , the results of its operations for the three and nine months ending March 31, 2016 and 2015 , and its cash flows for the nine months ending March 31, 2016 and 2015 . The condensed consolidated balance sheet at June 30, 2015 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 period ended March 31, 2016 are not necessarily indicative of the results to be expected for the entire year. Litigation We are subject to various routine legal proceedings and claims, including the following: In 2013 a patent infringement lawsuit entitled DataTreasury Corporation v. Jack Henry & Associates, Inc. et. al . was filed against the Company, several subsidiaries and a number of customer financial institutions in the US District Court for the Eastern District of Texas. The complaint seeks damages, interest, injunctive relief, and attorneys' fees for the alleged infringement of two patents, as well as trebling of damage awards for alleged willful infringement. We believe we have strong defenses and have defended the lawsuit vigorously. A part of that defense has been the filing of challenges to the validity of plaintiff's patents in post-grant proceedings at the Patent Trial and Appeal Board ("PTAB") of the U.S. Patent and Trademark Office. On April 29, July 8, and September 1 2015, the PTAB issued decisions holding that all relevant claims of the plaintiff's patents are unpatentable and invalid. DataTreasury has appealed the PTAB decisions to the U.S. Court of Appeals for the Federal Circuit. At this stage, we cannot make a reasonable estimate of possible loss or range of loss, if any, arising from this lawsuit. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Fair Value of Financial Instruments (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS For cash equivalents, 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 fair value of long term debt also approximates carrying value as estimated using discounted cash flows based on the Company’s current incremental borrowing rates. 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 cash and cash equivalents, and financial liabilities is as follows: Estimated Fair Value Measurements Total Fair Level 1 Level 2 Level 3 Value March 31, 2016 Financial Assets: Money market funds $ 23,878 $ — $ — $ 23,878 Financial Liabilities: Revolving credit facility $ — $ 100,000 $ — $ 100,000 June 30, 2015 Financial Assets: Money market funds $ 98,888 $ — $ — $ 98,888 Financial Liabilities: Revolving credit facility $ — $ 50,000 $ — $ 50,000 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers in May 2014. The new standard will supersede much of the existing authoritative literature for revenue recognition. In August 2015, the FASB also issued ASU No. 2015-14 which deferred the effective date of the new standard by one year. The standard and related amendments will be effective for the Company for its annual reporting period beginning July 1, 2018, including interim periods within that reporting period. Along with the deferral of the effective date, ASU No. 2015-14 allows early application as of the original effective date. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect as of the beginning of the period of adoption. In March 2016, the FASB issued ASU No. 2016-08, which addresses principal versus agent considerations under the new revenue standard. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability (same treatment as debt discounts). ASU No. 2015-03 will be effective for the Company in its fiscal year ended June 30, 2017. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company currently classifies debt issuance costs as an asset, and will adopt these changes beginning July 1, 2016. ASU No. 2015-17 was issued by the FASB in November 2015 as part of the Simplification Initiative. This ASU eliminates the requirement to separate deferred income tax liabilities and assets into non-current and current amounts. ASU No. 2015-17 is effective for the Company for its annual reporting period beginning July 1, 2017 and early adoption is permitted. In the third quarter of fiscal 2016, management elected to early adopt and all deferred income tax assets and liabilities are reported as non-current. At March 31, 2016 , the current portion of our deferred income tax liability was $7,034 . Prior periods were not retrospectively adjusted. The FASB issued ASU No. 2016-02, Leases, in February 2016. This ASU aims to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and requiring disclosure of key information regarding leasing arrangements. ASU No. 2016-02 will be effective for Jack Henry's annual reporting period beginning July 1, 2019 and early adoption is permitted. The Company is currently assessing the impact this new standard will have on our consolidated financial statements. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting in March 2016. The new standard will simplify several aspects of the accounting for share-based payment transactions, including reporting of excess tax benefits and shortfalls, application of forfeiture rates, statutory minimum withholding considerations, and classification within the statement of cash flows. ASU No. 2016-09 is effective for the Company’s annual reporting period beginning July 1, 2017 and early adoption is permitted. The Company is currently evaluating the newly issued guidance, including the estimated impact it will have on our consolidated financial statements. The Company has not yet determined when the changes will be adopted. |
Debt (Text Block)
Debt (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | DEBT The Company’s outstanding long and short term debt is as follows: March 31, June 30, 2016 2015 LONG TERM DEBT Revolving credit facility $ 100,000 $ 50,000 Capital leases — 816 100,000 50,816 Less current maturities — 714 Debt, net of current maturities $ 100,000 $ 50,102 SHORT TERM DEBT Capital leases $ 213 $ 1,881 Current maturities of long-term debt — 714 Notes payable and current maturities of long term debt $ 213 $ 2,595 Capital leases The Company has entered into various capital lease obligations for the use of certain computer equipment. The Company currently has short term capital lease obligations totaling $213 at March 31, 2016 . Revolving credit facility The revolving credit facility allows for borrowings of up to $300,000 , which may be increased by the Company at any time until maturity to $600,000 . The credit facility bears interest at a variable rate equal to (a) a rate based on LIBOR or (b) an alternate base rate (the highest of (i) the Prime Rate for such day, (ii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iii) the Eurocurrency Rate for a one month Interest Period on such day for dollars plus 1.0% ), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company. The credit facility is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the agreement. As of March 31, 2016 , the Company was in compliance with all such covenants. The revolving loan terminates February 20, 2020 and at March 31, 2016 , the outstanding revolving loan balance was $100,000 . Other lines of credit The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1% . The credit line expires April 30, 2017 . At March 31, 2016 , no amount was outstanding. Interest The Company paid interest of $748 and $415 during the nine months ended March 31, 2016 and 2015 , respectively. Property and Equipment Property and equipment included $(1,379) and $5,444 of net change in assets acquired via accrued liabilities or capital lease at March 31, 2016 and 2015 , respectively. These amounts were excluded from capital expenditures on the statement of cash flows. |
Income Taxes (Text Block)
Income Taxes (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The effective tax rate was 32.1% of income before income taxes for the quarter ended March 31, 2016 , compared to 33.8% for the same quarter in fiscal 2015 . The decrease in effective tax rate was primarily due to the recognition of additional federal Research and Experimentation Credit ("R&E Credit") tax benefits in the current period compared to the prior year quarter. The Company paid income taxes of $65,064 and $60,164 in the nine months ended March 31, 2016 and 2015 , respectively. At March 31, 2016 , the Company had $7,644 of gross unrecognized tax benefits, $6,147 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,249 and $1,388 related to uncertain tax positions at March 31, 2016 and 2015 , respectively. During the period ended March 31, 2016, the Internal Revenue Service commenced an examination of the Company’s U.S. federal income tax returns for fiscal year ended June 30, 2014. The examination is expected to be completed in December 2016. At this time, it is anticipated that the examination will not result in a material change to the Company’s consolidated financial statements. The U.S. federal and state income tax returns for fiscal 2012 and all subsequent years remain subject to examination as of March 31, 2016 under statute of limitations rules. We anticipate potential changes due to expiring statutes could reduce the unrecognized tax benefits balance by $1,500 - $3,000 within twelve months of March 31, 2016 . |
Stock Based Compensation (Text
Stock Based Compensation (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK-BASED COMPENSATION Our operating income for the three months ended March 31, 2016 and 2015 includes $3,101 and $2,759 of stock-based compensation costs, respectively. For the nine months ended March 31, 2016 and 2015 , stock-based compensation costs totaled $8,213 and $7,342 , respectively. 2005 NSOP and 1996 SOP The Company previously issued options to employees under the 1996 Stock Option Plan (“1996 SOP”) and to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No stock options were issued by the Company during the nine months ended March 31, 2016 . A summary of option plan activity under these plans are as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding July 1, 2015 100 23.07 Granted — — Forfeited — — Exercised — — Outstanding March 31, 2016 100 $ 23.07 $ 6,151 Vested March 31, 2016 100 $ 23.07 $ 6,151 Exercisable March 31, 2016 100 $ 23.07 $ 6,151 Compensation cost related to outstanding options has now been fully recognized. The weighted average remaining contractual term on options currently exercisable as of March 31, 2016 was 2.41 years . Restricted Stock Plan The Company issues both share awards and unit awards under the Restricted Stock Plan. The following table summarizes non-vested share awards as of March 31, 2016 , as well as activity for the nine months then ended: Share awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2015 72 34.28 Granted 22 66.13 Vested (23 ) 42.55 Forfeited (11 ) 22.51 Outstanding March 31, 2016 60 $ 44.92 At March 31, 2016 , there was $1,233 of compensation expense that has yet to be recognized related to non-vested restricted stock share awards, which will be recognized over a weighted-average period of 0.92 years . The following table summarizes non-vested unit awards as of March 31, 2016 , as well as activity for the nine months then ended: Unit awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2015 499 48.13 Granted 130 75.99 Vested (99 ) 44.09 Forfeited (101 ) 45.89 Outstanding March 31, 2016 429 $ 58.06 The Company utilized a Monte Carlo pricing model customized to the specific provisions of the Company’s plan design to value unit awards subject to performance targets on the grant dates. The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 118 unit awards granted in fiscal 2016 are as follows: Volatility 15.6 % Risk free interest rate 1.06 % Dividend yield 1.5 % Stock Beta 0.741 The remaining 12 unit awards granted are not subject to performance targets, and therefore the estimated fair value at measurement date is valued in the same manner as restricted stock award grants. At March 31, 2016 , there was $12,330 of compensation expense that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted-average period of 1.34 years . |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The following table reflects the reconciliation between basic and diluted earnings per share. Three Months Ended March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Net Income $ 53,883 $ 50,712 $ 164,597 $ 150,679 Common share information: Weighted average shares outstanding for basic earnings per share 78,805 80,880 79,608 81,502 Dilutive effect of stock options and restricted stock 362 214 283 271 Weighted average shares outstanding for diluted earnings per share 79,167 81,094 79,891 81,773 Basic earnings per share $ 0.68 $ 0.63 $ 2.07 $ 1.85 Diluted earnings per share $ 0.68 $ 0.63 $ 2.06 $ 1.84 Per share information is based on the weighted average number of common shares outstanding for the three and nine months ended March 31, 2016 and 2015 . Stock options and restricted stock have been included in the calculation of earnings per share to the extent they are dilutive. There were no anti-dilutive stock options and restricted stock shares excluded for the three month period ended March 31, 2016 . 112 shares were excluded for the three month period ended March 31, 2015 . For the nine months ended March 31, 2016 , there were no anti-dilutive stock options and restricted stock shares excluded, and there were 83 excluded for the nine months ended March 31, 2015 . |
Business Acquisitions (Text Blo
Business Acquisitions (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS ACQUISITION Bayside Business Solutions, Inc. Effective July 1, 2015 , the Company acquired all of the equity interests of Bayside Business Solutions, an Alabama-based company that provides technology solutions and payment processing services primarily for the financial services industry, for $10,000 paid in cash. This acquisition was funded using existing operating cash. The acquisition of Bayside Business Solutions expanded the Company’s presence in commercial lending within the industry. Management has completed a preliminary purchase price allocation of Bayside Business Solutions and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their preliminary fair values as of July 1, 2015 are set forth below: Current assets $ 1,922 Long-term assets 253 Identifiable intangible assets 5,005 Total liabilities assumed (3,064 ) Total identifiable net assets 4,116 Goodwill 5,884 Net assets acquired $ 10,000 The amounts shown above may change in the near term as management continues to evaluate the income tax implications of this business combination. The goodwill of $5,884 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 Bayside Business Solutions, together with the value of Bayside Business Solutions’ assembled workforce. Goodwill from this acquisition, none of which is expected to be deductible for income tax purposes, has been allocated in our Bank Systems and Services segment, as we have commenced our integration of this company within that reporting unit. Identifiable intangible assets from this acquisition consist of customer relationships of $3,402 , $659 of computer software and other intangible assets of $944 . The weighted average amortization period for acquired customer relationships, acquired computer software, and other intangible assets is 15 years , 5 years , and 20 years , respectively. Current assets were inclusive of cash acquired of $1,725 . The fair value of current assets acquired included accounts receivable of $178 . The gross amount of receivables was $178 , none of which was expected to be uncollectible. During fiscal year 2016, the Company incurred $55 in costs related to the acquisition of Bayside Business Solutions. These costs included fees for legal, valuation and other fees. These costs were expensed as incurred and were included within general and administrative expenses. The results of Bayside Business Solutions’ operations included in the Company’s consolidated statement of operations for the nine months ended March 31, 2016 included revenue of $2,921 and after-tax net loss of $277 . The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided. |
Business Segment Information (T
Business Segment Information (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions. The Company’s operations are classified into two reportable segments: bank systems and services (“Bank”) and credit union systems and services (“Credit Union”). The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment, and return on revenue. Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Bank Credit Union Total Bank Credit Union Total REVENUE License $ 292 $ — $ 292 $ 333 $ 236 $ 569 Support and service 236,337 83,312 319,649 228,666 68,230 296,896 Hardware 9,574 3,671 13,245 9,112 3,132 12,244 Total revenue 246,203 86,983 333,186 238,111 71,598 309,709 COST OF SALES Cost of license 193 — 193 141 144 285 Cost of support and service 141,995 42,532 184,527 132,548 35,909 168,457 Cost of hardware 6,923 2,630 9,553 6,791 2,361 9,152 Total cost of sales 149,111 45,162 194,273 139,480 38,414 177,894 GROSS PROFIT $ 97,092 $ 41,821 138,913 98,631 33,184 131,815 OPERATING EXPENSES 59,083 54,613 INTEREST INCOME (EXPENSE) (432 ) (636 ) INCOME BEFORE INCOME TAXES $ 79,398 $ 76,566 Nine Months Ended Nine Months Ended March 31, 2016 March 31, 2015 Bank Credit Union Total Bank Credit Union Total REVENUE License $ 2,102 $ 428 $ 2,530 $ 1,062 $ 501 $ 1,563 Support and service 696,691 250,924 947,615 678,989 203,028 882,017 Hardware 25,153 12,379 37,532 28,987 9,910 38,897 Total revenue 723,946 263,731 987,677 709,038 213,439 922,477 COST OF SALES Cost of license 755 118 873 691 311 1,002 Cost of support and service 415,148 126,082 541,230 395,469 108,456 503,925 Cost of hardware 17,455 8,824 26,279 20,849 7,262 28,111 Total cost of sales 433,358 135,024 568,382 417,009 116,029 533,038 GROSS PROFIT $ 290,588 $ 128,707 419,295 $ 292,029 $ 97,410 389,439 OPERATING EXPENSES 174,140 160,949 INTEREST INCOME (EXPENSE) (725 ) (1,155 ) INCOME BEFORE INCOME TAXES $ 244,430 $ 227,335 March 31, June 30, 2016 2015 Property and equipment, net Bank systems and services $ 265,843 $ 263,231 Credit Union systems and services 32,180 33,101 Total $ 298,023 $ 296,332 Intangible assets, net Bank systems and services $ 705,632 $ 664,231 Credit Union systems and services 231,335 233,918 Total $ 936,967 $ 898,149 The Company has not disclosed any additional asset information by segment, as the information is not produced internally and its preparation is impracticable. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Text Block) | 9 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Sale of business On April 19, 2016 , the Company announced that it has entered into a definitive agreement to sell its Alogent division ("Alogent") to Antelope Acquisition Co., an affiliate of Battery Ventures. Alogent, which is included in our banking segment, provides branch deposit automation and remote deposition solutions to large financial institutions. The closing of the transaction is expected to occur by May 31, 2016 . The final purchase price is subject to change based upon certain conditions present at closing, therefore the final purchase price and net gain or loss has not yet been finalized. The following table presents the aggregate carrying values of the respective asset and liability classes related to the Alogent sale: March 31, Carrying amounts of assets held for sale: Receivables, net 4,770 Prepaid expenses and other 1,578 Deferred costs 3,795 Property and Equipment, Net 280 Non-current deferred costs 782 Computer software, net of amortization 9,741 Other non-current assets 4,489 Customer relationships, net of amortization 7,477 Other intangible assets, net of amortization 601 Goodwill 3,618 Total assets $ 37,131 Carrying amounts of liabilities related to assets held for sale: Accrued expenses 2,203 Deferred revenues 16,762 Non-current deferred revenues 1,899 Non-current deferred income tax liability 7,025 Debt, net of current maturities 68 Total liabilities 27,957 |
Nature of Operations and Summ16
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The condensed consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated. |
Common Stock | 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 short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2016 , there were 23,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 6,028 additional shares. The total cost of treasury shares at March 31, 2016 is $855,594 . During the first nine months of fiscal 2016 , the Company repurchased 2,120 treasury shares for $155,122 . At June 30, 2015 , there were 21,843 shares in treasury stock and the Company had authority to repurchase up to 8,148 additional shares. Dividends declared per share were $0.28 and $0.25 , for the three months ended March 31, 2016 and 2015 , respectively. For the nine months ended March 31, 2016 and 2015 , dividends declared per share were $0.78 and $0.69 , respectively. |
Fair Value of Financial Instr17
Fair Value of Financial Instruments Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | For cash equivalents, 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 fair value of long term debt also approximates carrying value as estimated using discounted cash flows based on the Company’s current incremental borrowing rates. 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 Instr18
Fair Value of Financial Instruments Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair value of financial assets, included in cash and cash equivalents, and financial liabilities is as follows: Estimated Fair Value Measurements Total Fair Level 1 Level 2 Level 3 Value March 31, 2016 Financial Assets: Money market funds $ 23,878 $ — $ — $ 23,878 Financial Liabilities: Revolving credit facility $ — $ 100,000 $ — $ 100,000 June 30, 2015 Financial Assets: Money market funds $ 98,888 $ — $ — $ 98,888 Financial Liabilities: Revolving credit facility $ — $ 50,000 $ — $ 50,000 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s outstanding long and short term debt is as follows: March 31, June 30, 2016 2015 LONG TERM DEBT Revolving credit facility $ 100,000 $ 50,000 Capital leases — 816 100,000 50,816 Less current maturities — 714 Debt, net of current maturities $ 100,000 $ 50,102 |
Schedule of Short-term Debt [Table Text Block] | SHORT TERM DEBT Capital leases $ 213 $ 1,881 Current maturities of long-term debt — 714 Notes payable and current maturities of long term debt $ 213 $ 2,595 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of option plan activity under these plans are as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding July 1, 2015 100 23.07 Granted — — Forfeited — — Exercised — — Outstanding March 31, 2016 100 $ 23.07 $ 6,151 Vested March 31, 2016 100 $ 23.07 $ 6,151 Exercisable March 31, 2016 100 $ 23.07 $ 6,151 |
Schedule of Nonvested Restricted Stock Activity [Table Text Block] | The following table summarizes non-vested share awards as of March 31, 2016 , as well as activity for the nine months then ended: Share awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2015 72 34.28 Granted 22 66.13 Vested (23 ) 42.55 Forfeited (11 ) 22.51 Outstanding March 31, 2016 60 $ 44.92 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes non-vested unit awards as of March 31, 2016 , as well as activity for the nine months then ended: Unit awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2015 499 48.13 Granted 130 75.99 Vested (99 ) 44.09 Forfeited (101 ) 45.89 Outstanding March 31, 2016 429 $ 58.06 |
ScheduleOfShareBasedPaymentAwardRSUValuationAssumptionsTableTextBlock [Table Text Block] | The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 118 unit awards granted in fiscal 2016 are as follows: Volatility 15.6 % Risk free interest rate 1.06 % Dividend yield 1.5 % Stock Beta 0.741 |
Earnings Per Share Earnings P21
Earnings Per Share Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reflects the reconciliation between basic and diluted earnings per share. Three Months Ended March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Net Income $ 53,883 $ 50,712 $ 164,597 $ 150,679 Common share information: Weighted average shares outstanding for basic earnings per share 78,805 80,880 79,608 81,502 Dilutive effect of stock options and restricted stock 362 214 283 271 Weighted average shares outstanding for diluted earnings per share 79,167 81,094 79,891 81,773 Basic earnings per share $ 0.68 $ 0.63 $ 2.07 $ 1.85 Diluted earnings per share $ 0.68 $ 0.63 $ 2.06 $ 1.84 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their preliminary fair values as of July 1, 2015 are set forth below: Current assets $ 1,922 Long-term assets 253 Identifiable intangible assets 5,005 Total liabilities assumed (3,064 ) Total identifiable net assets 4,116 Goodwill 5,884 Net assets acquired $ 10,000 |
Business Segment Information 23
Business Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Bank Credit Union Total Bank Credit Union Total REVENUE License $ 292 $ — $ 292 $ 333 $ 236 $ 569 Support and service 236,337 83,312 319,649 228,666 68,230 296,896 Hardware 9,574 3,671 13,245 9,112 3,132 12,244 Total revenue 246,203 86,983 333,186 238,111 71,598 309,709 COST OF SALES Cost of license 193 — 193 141 144 285 Cost of support and service 141,995 42,532 184,527 132,548 35,909 168,457 Cost of hardware 6,923 2,630 9,553 6,791 2,361 9,152 Total cost of sales 149,111 45,162 194,273 139,480 38,414 177,894 GROSS PROFIT $ 97,092 $ 41,821 138,913 98,631 33,184 131,815 OPERATING EXPENSES 59,083 54,613 INTEREST INCOME (EXPENSE) (432 ) (636 ) INCOME BEFORE INCOME TAXES $ 79,398 $ 76,566 Nine Months Ended Nine Months Ended March 31, 2016 March 31, 2015 Bank Credit Union Total Bank Credit Union Total REVENUE License $ 2,102 $ 428 $ 2,530 $ 1,062 $ 501 $ 1,563 Support and service 696,691 250,924 947,615 678,989 203,028 882,017 Hardware 25,153 12,379 37,532 28,987 9,910 38,897 Total revenue 723,946 263,731 987,677 709,038 213,439 922,477 COST OF SALES Cost of license 755 118 873 691 311 1,002 Cost of support and service 415,148 126,082 541,230 395,469 108,456 503,925 Cost of hardware 17,455 8,824 26,279 20,849 7,262 28,111 Total cost of sales 433,358 135,024 568,382 417,009 116,029 533,038 GROSS PROFIT $ 290,588 $ 128,707 419,295 $ 292,029 $ 97,410 389,439 OPERATING EXPENSES 174,140 160,949 INTEREST INCOME (EXPENSE) (725 ) (1,155 ) INCOME BEFORE INCOME TAXES $ 244,430 $ 227,335 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 31, June 30, 2016 2015 Property and equipment, net Bank systems and services $ 265,843 $ 263,231 Credit Union systems and services 32,180 33,101 Total $ 298,023 $ 296,332 Intangible assets, net Bank systems and services $ 705,632 $ 664,231 Credit Union systems and services 231,335 233,918 Total $ 936,967 $ 898,149 |
Subsequent Events Subsequent 24
Subsequent Events Subsequent Events (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Alogent [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents the aggregate carrying values of the respective asset and liability classes related to the Alogent sale: March 31, Carrying amounts of assets held for sale: Receivables, net 4,770 Prepaid expenses and other 1,578 Deferred costs 3,795 Property and Equipment, Net 280 Non-current deferred costs 782 Computer software, net of amortization 9,741 Other non-current assets 4,489 Customer relationships, net of amortization 7,477 Other intangible assets, net of amortization 601 Goodwill 3,618 Total assets $ 37,131 Carrying amounts of liabilities related to assets held for sale: Accrued expenses 2,203 Deferred revenues 16,762 Non-current deferred revenues 1,899 Non-current deferred income tax liability 7,025 Debt, net of current maturities 68 Total liabilities 27,957 |
Nature of Operations and Summ25
Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |||
Treasury Stock, Value | $ 855,594 | $ 700,472 | |
Treasury Stock, Shares, Acquired | 2,120,000 | ||
Payments for Repurchase of Common Stock | $ 155,122 | $ 112,803 | |
Treasury Stock, Shares | 23,962,117 | 21,842,632 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 6,028,000 | 8,148,000 |
Nature of Operations and Summ26
Nature of Operations and Summary of Significant Accounting Policies Dividends Paid Per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | ||||
Dividends declared per share | $ 0.28 | $ 0.25 | $ 0.78 | $ 0.69 |
Nature of Operations and Summ27
Nature of Operations and Summary of Significant Accounting Policies Litigation (Details) | 1 Months Ended |
May. 31, 2013patent | |
DataTreasury Corporation Lawsuit [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Patents Allegedly Infringed, Number | 2 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 23,878 | $ 98,888 |
Lines of Credit, Fair Value Disclosure | 100,000 | 50,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 23,878 | 98,888 |
Lines of Credit, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Lines of Credit, Fair Value Disclosure | 100,000 | 50,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Lines of Credit, Fair Value Disclosure | $ 0 | $ 0 |
Recent Accounting Pronounceme29
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Deferred income tax liability | $ 0 | $ 7,034 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Deferred income tax liability | $ 7,034 |
Debt Long Term (Details)
Debt Long Term (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
LONG TERM DEBT | ||
Capital leases | $ 0 | $ 816 |
Long Term Debt | 100,000 | 50,816 |
Less current maturities | 0 | 714 |
Debt, net of current maturities | 100,000 | 50,102 |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
LONG TERM DEBT | ||
Revolving credit facility | $ 100,000 | $ 50,000 |
Debt Short Term (Details)
Debt Short Term (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Short-term Debt [Abstract] | ||
Capital leases | $ 213 | $ 1,881 |
Current maturities of long-term debt | 0 | 714 |
Notes payable and current maturities of long term debt | $ 213 | $ 2,595 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | |||
Capital leases - short term | $ 213 | $ 1,881 | |
Interest Paid | 748 | $ 415 | |
Capital Expenditures Incurred but Not yet Paid | (1,379) | $ 5,444 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Loan, Unused Borrowing Capacity | $ 5,000 | ||
Unsecured Loan, Maturity Date | Apr. 30, 2017 | ||
Unsecured Loan, Amount Outstanding | $ 0 | ||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility, Current Borrowing Capacity | 300,000 | ||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 600,000 | ||
Revolving Credit Facility, Expiration Date | Feb. 20, 2020 | ||
Long-term Debt | $ 100,000 | $ 50,000 | |
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.00% | ||
Prime Rate [Member] | Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.00% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 32.10% | 33.80% | ||
Income Taxes Paid | $ 65,064 | $ 60,164 | ||
Unrecognized Tax Benefits | $ 7,644 | 7,644 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6,147 | 6,147 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,249 | $ 1,388 | 1,249 | $ 1,388 |
Minimum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | 1,500 | 1,500 | ||
Maximum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | $ 3,000 | $ 3,000 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ 3,101 | $ 2,759 | $ 8,213 | $ 7,342 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining contractual term | 2 years 150 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense yet to be recognized | 12,330 | $ 12,330 | ||
Compensation expense yet to be recognized, period for recognition | 1 year 124 days | |||
Granted, number of shares | 130 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense yet to be recognized | $ 1,233 | $ 1,233 | ||
Compensation expense yet to be recognized, period for recognition | 336 days | |||
Granted, number of shares | 22 | |||
Fair value under Monte Carlo [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 118 | |||
Fair value on grant date less PV of dividends [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 12 |
Stock Based Compensation Stock
Stock Based Compensation Stock Options (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, period start, number of shares | shares | 100 |
Granted, number of shares | shares | 0 |
Forfeited, number of shares | shares | 0 |
Exercised, number of shares | shares | 0 |
Outstanding, period end, number of shares | shares | 100 |
Outstanding, period start, weighted average exercise price | $ / shares | $ 23.07 |
Granted, weighted average exercise price | $ / shares | 0 |
Forfeited, weighted average exercise price | $ / shares | 0 |
Exercised, weighted average exercise price | $ / shares | 0 |
Outstanding, period end, weighted average exercise price | $ / shares | $ 23.07 |
Outstanding, period end, intrinsic value | $ | $ 6,151 |
Vested, period end, number of shares | shares | 100 |
Vested, period end, weighted average exercise price | $ / shares | $ 23.07 |
Vested, period end, intrinsic value | $ | $ 6,151 |
Exercisable, period end, number of shares | shares | 100 |
Exercisable, period end, weighted average exercise price | $ / shares | $ 23.07 |
Exercisable, period end, intrinsic value | $ | $ 6,151 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Share Awards (Details) - Restricted Stock [Member] shares in Thousands | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, period start, number of shares | shares | 72 |
Granted, number of shares | shares | 22 |
Vested, number of shares | shares | (23) |
Forfeited, number of shares | shares | (11) |
Outstanding, period end, number of shares | shares | 60 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 34.28 |
Granted, weighted average grant date fair value | $ / shares | 66.13 |
Vested, weighted average grant date fair value | $ / shares | 42.55 |
Forfeited, weighted average grant date fair value | $ / shares | 22.51 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 44.92 |
Stock Based Compensation Rest37
Stock Based Compensation Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, period start, number of shares | shares | 499 |
Granted, number of shares | shares | 130 |
Vested, number of shares | shares | (99) |
Forfeited, number of shares | shares | (101) |
Outstanding, period end, number of shares | shares | 429 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 48.13 |
Granted, weighted average grant date fair value | $ / shares | 75.99 |
Vested, weighted average grant date fair value | $ / shares | 44.09 |
Forfeited, weighted average grant date fair value | $ / shares | 45.89 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 58.06 |
Stock Based Compensation RSU Me
Stock Based Compensation RSU Measurement Date Assumptions (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Mar. 31, 2016 | |
RSU grant date weighted average fair value assumptions | |
Volatility | 15.60% |
Risk free interest rate | 1.06% |
Dividend yield | 1.50% |
Stock Beta | 0.741 |
Earnings Per Share Earnings P39
Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net Income | $ 53,883 | $ 50,712 | $ 164,597 | $ 150,679 |
Common share information: | ||||
Weighted average shares outstanding for basic earnings per share | 78,805 | 80,880 | 79,608 | 81,502 |
Dilutive effect of stock options and restricted stock | 362 | 214 | 283 | 271 |
Weighted average shares outstanding for diluted earnings per share | 79,167 | 81,094 | 79,891 | 81,773 |
Basic earnings per share | $ 0.68 | $ 0.63 | $ 2.07 | $ 1.85 |
Diluted earnings per share | $ 0.68 | $ 0.63 | $ 2.06 | $ 1.84 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 112 | 0 | 83 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Thousands | Jul. 01, 2015 | Mar. 31, 2016 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 556,256 | $ 550,366 | |
Business Acquisition, Bayside Business Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Jul. 1, 2015 | ||
Payments to Acquire Businesses, Gross | $ 10,000 | ||
Current assets | 1,922 | ||
Long-term assets | 253 | ||
Identifiable intangible assets | 5,005 | ||
Total liabilities assumed | (3,064) | ||
Total identifiable net assets | 4,116 | ||
Goodwill | 5,884 | ||
Net assets acquired | $ 10,000 | ||
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Percent | 0.00% | ||
Cash Acquired from Acquisition | $ 1,725 | ||
Business Combination, Acquired Receivables, Fair Value | 178 | ||
Business Combination, Acquired Receivables, Gross Contractual Amount | 178 | ||
Business Combination, Acquired Receivables, Estimated Uncollectible | 0 | ||
Business Acquisition, Transaction Costs | 55 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 2,921 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | (277) | ||
Customer Relationships [Member] | Business Acquisition, Bayside Business Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 3,402 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Computer Software, Intangible Asset [Member] | Business Acquisition, Bayside Business Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 659 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||
Other Intangible Assets [Member] | Business Acquisition, Bayside Business Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 944 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Business Segment Information Na
Business Segment Information Narrative (Details) | 9 Months Ended |
Mar. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Business Segment Information Re
Business Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
REVENUE | ||||
License | $ 292 | $ 569 | $ 2,530 | $ 1,563 |
Support and service | 319,649 | 296,896 | 947,615 | 882,017 |
Hardware | 13,245 | 12,244 | 37,532 | 38,897 |
Total revenue | 333,186 | 309,709 | 987,677 | 922,477 |
COST OF SALES | ||||
Cost of license | 193 | 285 | 873 | 1,002 |
Cost of support and service | 184,527 | 168,457 | 541,230 | 503,925 |
Cost of hardware | 9,553 | 9,152 | 26,279 | 28,111 |
Total cost of sales | 194,273 | 177,894 | 568,382 | 533,038 |
GROSS PROFIT | 138,913 | 131,815 | 419,295 | 389,439 |
Total operating expenses | 59,083 | 54,613 | 174,140 | 160,949 |
Total interest income (expense) | (432) | (636) | (725) | (1,155) |
INCOME BEFORE INCOME TAXES | 79,398 | 76,566 | 244,430 | 227,335 |
Banking Systems and Services [Member] | ||||
REVENUE | ||||
License | 292 | 333 | 2,102 | 1,062 |
Support and service | 236,337 | 228,666 | 696,691 | 678,989 |
Hardware | 9,574 | 9,112 | 25,153 | 28,987 |
Total revenue | 246,203 | 238,111 | 723,946 | 709,038 |
COST OF SALES | ||||
Cost of license | 193 | 141 | 755 | 691 |
Cost of support and service | 141,995 | 132,548 | 415,148 | 395,469 |
Cost of hardware | 6,923 | 6,791 | 17,455 | 20,849 |
Total cost of sales | 149,111 | 139,480 | 433,358 | 417,009 |
GROSS PROFIT | 97,092 | 98,631 | 290,588 | 292,029 |
Credit Union Systems and Services [Member] | ||||
REVENUE | ||||
License | 0 | 236 | 428 | 501 |
Support and service | 83,312 | 68,230 | 250,924 | 203,028 |
Hardware | 3,671 | 3,132 | 12,379 | 9,910 |
Total revenue | 86,983 | 71,598 | 263,731 | 213,439 |
COST OF SALES | ||||
Cost of license | 0 | 144 | 118 | 311 |
Cost of support and service | 42,532 | 35,909 | 126,082 | 108,456 |
Cost of hardware | 2,630 | 2,361 | 8,824 | 7,262 |
Total cost of sales | 45,162 | 38,414 | 135,024 | 116,029 |
GROSS PROFIT | $ 41,821 | $ 33,184 | $ 128,707 | $ 97,410 |
Business Segment Information 43
Business Segment Information Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Segment Reporting, Asset Reconciling Items | ||
Property and equipment, net | $ 298,023 | $ 296,332 |
Intangible assets, net | 936,967 | 898,149 |
Banking Systems and Services [Member] | ||
Segment Reporting, Asset Reconciling Items | ||
Property and equipment, net | 265,843 | 263,231 |
Intangible assets, net | 705,632 | 664,231 |
Credit Union Systems and Services [Member] | ||
Segment Reporting, Asset Reconciling Items | ||
Property and equipment, net | 32,180 | 33,101 |
Intangible assets, net | $ 231,335 | $ 233,918 |
Subsequent Events Subsequent 44
Subsequent Events Subsequent Events (Details) - USD ($) $ in Thousands | Apr. 19, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Receivables, net | $ 137,406 | $ 245,387 | |
Prepaid expenses and other | 70,075 | 69,096 | |
Deferred costs | 40,252 | 27,950 | |
Property and equipment, net | 298,023 | 296,332 | |
Deferred Costs, Noncurrent | 98,717 | 96,423 | |
Computer software, net of amortization | 228,087 | 191,541 | |
Other non-current assets | 58,944 | 52,432 | |
Other intangible assets, net of amortization | 37,724 | 34,038 | |
Goodwill | 556,256 | 550,366 | |
Total assets | 1,702,622 | 1,836,835 | |
Accrued expenses | 69,721 | 78,962 | |
Deferred revenues | 202,270 | 339,544 | |
Non-current deferred revenues | 180,901 | 192,443 | |
Non-current deferred income tax liability | 183,881 | 150,223 | |
Debt, net of current maturities | 100,000 | 50,102 | |
Total liabilities | 753,755 | 845,301 | |
Customer Relationships [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Customer Relationships, Net of Amortization | 114,901 | $ 122,204 | |
Alogent Disposal [Member] | |||
Subsequent Event [Line Items] | |||
Subsequent Event, Date | Apr. 19, 2016 | ||
Alogent [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Receivables, net | 4,770 | ||
Prepaid expenses and other | 1,578 | ||
Deferred costs | 3,795 | ||
Property and equipment, net | 280 | ||
Deferred Costs, Noncurrent | 782 | ||
Computer software, net of amortization | 9,741 | ||
Other non-current assets | 4,489 | ||
Other intangible assets, net of amortization | 601 | ||
Goodwill | 3,618 | ||
Total assets | 37,131 | ||
Accrued expenses | 2,203 | ||
Deferred revenues | 16,762 | ||
Non-current deferred revenues | 1,899 | ||
Non-current deferred income tax liability | 7,025 | ||
Debt, net of current maturities | 68 | ||
Total liabilities | 27,957 | ||
Alogent [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Customer Relationships [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Customer Relationships, Net of Amortization | $ 7,477 |