Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 77,234,465 | |
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 | Sep. 30, 2017 | Jun. 30, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 104,040 | $ 114,765 |
Receivables, net | 172,515 | 276,923 |
Income tax receivable | 2,942 | 20,135 |
Prepaid expenses and other | 70,809 | 66,894 |
Deferred costs | 53,565 | 41,314 |
Total current assets | 403,871 | 520,031 |
PROPERTY AND EQUIPMENT, net | 273,834 | 282,934 |
OTHER ASSETS: | ||
Non-current deferred costs | 93,793 | 96,847 |
Computer software, net of amortization | 255,294 | 247,317 |
Other non-current assets | 84,699 | 82,525 |
Other intangible assets, net of amortization | 36,576 | 36,393 |
Goodwill | 558,831 | 552,465 |
Total other assets | 1,118,640 | 1,105,980 |
Total assets | 1,796,345 | 1,908,945 |
CURRENT LIABILITIES: | ||
Accounts payable | 8,857 | 6,841 |
Accrued expenses | 72,685 | 81,574 |
Accrued income taxes | 8,682 | 0 |
Deferred revenues | 324,516 | 382,777 |
Total current liabilities | 414,740 | 471,192 |
LONG TERM LIABILITIES: | ||
Non-current deferred revenues | 115,049 | 128,607 |
Non-current deferred income tax liability | 220,900 | 219,541 |
Debt, net of current maturities | 0 | 50,000 |
Other long-term liabilities | 7,843 | 7,554 |
Total long term liabilities | 343,792 | 405,702 |
Total liabilities | 758,532 | 876,894 |
STOCKHOLDERS' EQUITY | ||
Preferred stock - $1 par value; 500,000 shares authorized, none issued | 0 | 0 |
Common stock - $0.01 par value; 250,000,000 shares authorized; 103,188,252 shares issued at September 30, 2017; 103,083,299 shares issued at June 30, 2017 | 1,032 | 1,031 |
Additional paid-in capital | 448,288 | 452,016 |
Retained earnings | 1,624,785 | 1,585,278 |
Less treasury stock at cost; 25,961,920 shares at September 30, 2017; 25,660,212 shares at June 30, 2017 | (1,036,292) | (1,006,274) |
Total stockholders' equity | 1,037,813 | 1,032,051 |
Total liabilities and equity | 1,796,345 | 1,908,945 |
Customer Relationships [Member] | ||
OTHER ASSETS: | ||
Customer relationships, net of amortization | $ 89,447 | $ 90,433 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Sep. 30, 2017 | Jun. 30, 2017 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 500,000 | 500,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, issued shares | 103,188,252 | 103,083,299 |
Treasury Stock, Shares | 25,961,920 | 25,660,212 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUE | ||
REVENUE | $ 359,934 | $ 345,028 |
EXPENSES | ||
Cost of Revenue | 204,715 | 194,763 |
Research and Development | 20,929 | 19,739 |
Selling, General and Administrative | 43,733 | 39,109 |
Gain on Disposal of a Business | 1,705 | 0 |
Total Expenses | 267,672 | 253,611 |
OPERATING INCOME | 92,262 | 91,417 |
INTEREST INCOME (EXPENSE) | ||
Interest income | 147 | 108 |
Interest expense | (189) | (142) |
Total interest income (expense) | (42) | (34) |
INCOME BEFORE INCOME TAXES | 92,220 | 91,383 |
PROVISION FOR INCOME TAXES | 28,809 | 29,139 |
NET INCOME | $ 63,411 | $ 62,244 |
Earnings Per Share | ||
Basic earnings per share | $ 0.82 | $ 0.79 |
Basic weighted average shares outstanding | 77,283 | 78,413 |
Diluted earnings per share | $ 0.82 | $ 0.79 |
Diluted weighted average shares outstanding | 77,646 | 78,844 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net Income | $ 63,411 | $ 62,244 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 12,419 | 12,390 |
Amortization | 23,856 | 21,746 |
Change in deferred income taxes | 1,359 | 7,783 |
Expense for stock-based compensation | 1,513 | 1,197 |
Gain/loss on disposal of assets and businesses | (1,620) | 194 |
Changes in operating assets and liabilities: | ||
Change in receivables | 105,243 | 105,495 |
Change in prepaid expenses, deferred costs and other | (13,645) | (22,313) |
Change in accounts payable | 2,000 | (7,504) |
Change in accrued expenses | (9,881) | (16,362) |
Change in income taxes | 26,141 | 19,687 |
Change in deferred revenues | (72,074) | (51,186) |
Net cash from operating activities | 138,722 | 133,371 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payment for acquisitions, net of cash acquired | (10,455) | 0 |
Capital expenditures | (3,708) | (8,113) |
Proceeds from the sale of businesses | 200 | 0 |
Proceeds from sale of assets | 106 | 777 |
Internal use software | (3,452) | (4,328) |
Computer software developed | (22,976) | (20,237) |
Net cash from investing activities | (40,285) | (31,901) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments on credit facilities | (50,000) | (200) |
Purchase of treasury stock | (30,018) | (61,338) |
Dividends paid | (23,904) | (21,857) |
Proceeds from issuance of common stock upon exercise of stock options | 1 | 1 |
Tax withholding payments related to share based compensation | (7,033) | (5,337) |
Proceeds from sale of common stock, net | 1,792 | 1,470 |
Net cash from financing activities | (109,162) | (87,261) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (10,725) | 14,209 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 114,765 | 70,310 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 104,040 | $ 84,519 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
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 months ended September 30, 2017 and 2016 equals the Company’s net income. Prior Period Reclassification During the first quarter of fiscal 2018, the Company's management decided to change the presentation of its income statement, along with a change in the segment structure (see Note 9), in order to more clearly align with the way management manages the Company and evaluates performance. Amounts within the condensed consolidated statements of income for the three months ended September 30, 2016 have been reclassified to improve comparability with the three months ended September 30, 2017 . Revenue was previously classified as license, support and service, and hardware, and has been reclassified into one "Revenue" caption. Cost of sales was previously presented under three captions to correspond with our three lines of revenue, and has now been condensed to one caption, "Cost of Revenue". We have elected to include all operating expenses, including cost of revenue, under one expenses heading. Previously, cost of revenue was presented separately from operating expenses in order to show gross profit. Gross profit has been removed from our current presentation due to management focus on operating income. Additionally, within operating expenses, selling and marketing expense and general and administrative expense were previously presented under two captions, but are now condensed under one caption, labeled "Selling, General, and Administrative." Property and Equipment and Intangible Assets Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Accumulated depreciation at September 30, 2017 totaled $356,559 and at June 30, 2017 totaled $345,014 . 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 with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years. Accumulated amortization of intangible assets totaled $527,487 and $503,653 at September 30, 2017 and June 30, 2017 , respectively. 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, 2017 , there were 25,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 4,029 additional shares. The total cost of treasury shares at September 30, 2017 is $1,036,292 . During the first three months of fiscal 2018 , the Company repurchased 302 treasury shares for $30,018 . At June 30, 2017 , there were 25,660 shares in treasury stock and the Company had authority to repurchase up to 4,330 additional shares. Dividends declared per share were $0.31 and $0.28 , for the three months ended September 30, 2017 and 2016 , 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, 2017 . 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, 2017 . 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 September 30, 2017 , the results of its operations for the three months ending September 30, 2017 and 2016 , and its cash flows for the three months ending September 30, 2017 and 2016 . The condensed consolidated balance sheet at June 30, 2017 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 September 30, 2017 are not necessarily indicative of the results to be expected for the entire year. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Fair Value of Financial Instruments (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments[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 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 September 30, 2017 Financial Assets: Money market funds $ 65,491 $ — $ — $ 65,491 Certificate of Deposit $ — $ 2,001 $ — $ 2,001 Financial Liabilities: Revolving credit facility $ — $ — $ — $ — June 30, 2017 Financial Assets: Money market funds $ 68,474 $ — $ — $ 68,474 Certificate of Deposit $ — $ 2,001 $ — $ 2,001 Financial Liabilities: Revolving credit facility $ — $ 50,000 $ — $ 50,000 Non-Recurring Fair Value Measurements June 30, 2017 Long-lived assets held for sale (a) $ — $ 1,300 $ — $ 1,300 (a) In accordance with ASC Subtopic 360-10, long-lived assets held for sale with a carrying value of $4,575 were written down to their fair value of $1,300 , resulting in an impairment totaling $3,275 , which was included in earnings for the period ended June 30, 2017 . These assets are expected to be disposed of by sale within twelve months of June 30, 2017. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
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. This standard is part of an effort to create a common revenue standard for U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). The new standard will supersede much of the existing authoritative literature for revenue recognition. The new model enacts a five-step process for achieving the core principle, which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB also issued ASU No. 2015-14 which deferred the effective date of the new standard by one year, but allows early application as of the original effective date. We do not intend to adopt the provisions of the new standard early, so 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. In March 2016, the FASB issued ASU No. 2016-08, which addresses principal versus agent considerations under the new revenue standard. Additional guidance, including ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20, also addresses specific aspects of the new standard and are being considered. 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. The Company has taken the following steps in evaluating and planning for the implementation of the new standard: • Organization of a cross-functional implementation team whose goals are to: assess the impact of the guidance on each of our revenue streams by applying the five step model; determine new processes and procedures necessary to ensure proper revenue and cost recognition; quantify the effects of the new standard on prior and current year revenue; determine opening balances for deferred revenues and costs as of the beginning of fiscal 2017; develop disclosures required upon the adoption of the new standard; and develop new internal controls to ensure compliance with the new standard. • Selected and begun implementation and testing of new revenue recognition software that will apply the five-step model to each of our customer contracts. • Begun comparisons of revenue recognition under current accounting methods versus under ASC 606 for each of our revenue streams. Determinations that have been made regarding the effect of the new standard are as follows: • We expect the adoption of this standard to have a significant impact on our revenue recognition currently subject to Accounting Standards Codification (ASC) Topic 985. One of the most significant expected impacts relates to the recognition of license and implementation revenue on our multi-element arrangements. Under the current standard, license and implementation revenue on these arrangements is often recognized over the maintenance period of the software due to a lack of vendor-specific objective evidence of fair value ("VSOE") for these elements. Under ASC 606, revenue for license and implementation will no longer be deferred due solely to a lack of VSOE. • This new model will require more use of judgments and estimates than the current standard, including identifying performance obligations, estimating variable consideration, and allocating the transaction price to each performance obligation. We will be required to estimate the total expected value of variable charges, arising from items such as maintenance and transaction or item processing, at contract inception and include those estimates in the total transaction price of the contract to be allocated to each performance obligation. These estimates will be modified over the term of the contract, resulting in re-allocations of the transaction price and adjustments to revenue recognized on the contract. Significant implementation matters yet to be addressed include: • Which transition approach will be applied. • Determination of opening balances for deferred revenues and costs, and the quantitative effect of the new standard on prior and current year revenues and costs. • Development of required disclosures under the new standard. • Updates to our internal controls surrounding the new processes. 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. Specifically, the standard requires operating lease commitments to be recorded as operating lease liabilities and right-of-use assets, and the cost of those operating leases to be amortized on a straight-line basis. ASU No. 2016-02 will be effective for Jack Henry's annual reporting period beginning July 1, 2019 and early adoption is permitted. At transition, a modified retrospective approach must be utilized to measure leases as of the beginning of the earliest period presented. The Company is currently assessing the impact this new standard will have on our consolidated financial statements and when we will adopt it. ASU 2016-15 issued by the FASB in August 2016 clarifies cash flow classification of eight specific cash flow issues and is effective for our annual reporting period beginning July 1, 2018. Early adoption is permitted. We do not expect any significant impact to our financial statements as a result of this standard. |
Debt (Text Block)
Debt (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | DEBT 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 September 30, 2017 , the Company was in compliance with all such covenants. The revolving loan terminates February 20, 2020 . At September 30, 2017 , there was no outstanding revolving loan balance. There was $50,000 outstanding balance at June 30, 2017 . 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 April 2017 and expires on April 30, 2019 . At September 30, 2017 , no amount was outstanding. There was also no balance outstanding at June 30, 2017 . Interest The Company paid interest of $189 and $96 during the three months ended September 30, 2017 and 2016 , respectively. |
Income Taxes (Text Block)
Income Taxes (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The effective tax rate was 31.2% of income before income taxes for the quarter ended September 30, 2017 , compared to 31.9% for the same quarter in fiscal 2017 . The Company paid income taxes, net of refunds, of $747 and $1,446 in the three months ended September 30, 2017 and 2016 , respectively. At September 30, 2017 , the Company had $5,660 of gross unrecognized tax benefits, $4,188 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,051 and $1,304 related to uncertain tax positions at September 30, 2017 and 2016 , respectively. The U.S. federal and state income tax returns for fiscal year 2014 and all subsequent years remain subject to examination as of September 30, 2017 under statute of limitations rules. We anticipate potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $500 - $1,500 within twelve months of September 30, 2017 . |
Stock Based Compensation (Text
Stock Based Compensation (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and 2016 included $1,513 and $1,197 of stock-based compensation costs, respectively. Stock Options On November 10, 2015 , the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000 . For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant. The Company previously issued options to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No additional stock options may be issued under this plan. A summary of option plan activity under these plans is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding July 1, 2017 72 $ 50.04 Granted — — Forfeited — — Exercised — — Outstanding September 30, 2017 72 $ 50.04 $ 3,781 Vested and Expected to Vest September 30, 2017 72 $ 50.04 $ 3,781 Exercisable September 30, 2017 40 $ 20.55 $ 3,290 At September 30, 2017 , there was $292 of compensation cost yet to be recognized related to outstanding options. The weighted average remaining contractual term on options currently exercisable as of September 30, 2017 was 1.75 years . Restricted Stock Awards The Company issues both share awards and unit awards under the 2015 EIP, and previously issued these through the 2005 Restricted Stock Plan. The following table summarizes non-vested share awards as of September 30, 2017 , as well as activity for the three months then ended: Share awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2017 36 $ 73.66 Granted — — Vested (11 ) 57.60 Forfeited — 64.96 Outstanding September 30, 2017 25 $ 80.28 At September 30, 2017 , there was $828 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 1.02 years . The following table summarizes non-vested unit awards as of September 30, 2017 , as well as activity for the three months then ended: Unit awards Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding July 1, 2017 386 $ 67.84 Granted 83 90.11 Vested (139 ) 53.80 Forfeited (3 ) 75.36 Outstanding September 30, 2017 327 $ 79.38 $ 33,659 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 81 unit awards granted in fiscal 2018 are as follows: Volatility 15.60 % Risk free interest rate 1.55 % Dividend yield 1.20 % Stock Beta 0.687 The remaining 2 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 share award grants. At September 30, 2017 , there was $15,290 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 1.76 years . |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 2016 Net Income $ 63,411 $ 62,244 Common share information: Weighted average shares outstanding for basic earnings per share 77,283 78,413 Dilutive effect of stock options and restricted stock 363 431 Weighted average shares outstanding for diluted earnings per share 77,646 78,844 Basic earnings per share $ 0.82 $ 0.79 Diluted earnings per share $ 0.82 $ 0.79 Per share information is based on the weighted average number of common shares outstanding for the three months ended September 30, 2017 and 2016 . Stock options and restricted stock have been included in the calculation of earnings per share to the extent they are dilutive. There were 0 anti-dilutive stock options and restricted stock shares excluded for the three month period ended September 30, 2017 and 32 shares excluded for the three month period ended September 30, 2016 . |
Business Acquisitions (Text Blo
Business Acquisitions (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Business Acquisition Disclosure [Text Block] | BUSINESS ACQUISITION Vanguard Software Group On August 31, 2017 , the Company acquired all equity interest of Vanguard Software Group, a Florida-based company specializing in the underwriting, spreading, and online decisioning of commercial loans, for $10,744 paid in cash. This acquisition was funded using existing operating cash. The addition of Vanguard Software Group to the Company's ProfitStars® Lending Solutions Group expands functionality offered to clients, allowing for near-real-time communication with Jack Henry and Associates' core processing and ancillary solutions, and also enhances cross-sell opportunities. Management has completed a preliminary purchase price allocation of Vanguard Software Group 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 August 31, 2017 are set forth below: Current assets $ 1,153 Long-term assets 14 Identifiable intangible assets 4,195 Total liabilities assumed (1,117 ) Total identifiable net assets 4,245 Goodwill 6,499 Net assets acquired $ 10,744 The amounts shown above may change in the near term as management finalizes its calculation of the fair value of acquired assets and liabilities and evaluate the income tax implications of this business combination. The goodwill of $6,499 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 Vanguard Software Group, together with the value of Vanguard Software Group's assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is expected to be deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $2,234 , computer software of $1,426 , and other intangible assets of $535 . The weighted average amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years , 10 years , and 10 years , respectively. Current assets were inclusive of cash acquired of $289 . The fair value of current assets acquired included accounts receivable of $847 . The gross amount of receivables was $847 , none of which was expected to be uncollectible. Costs incurred related to the acquisition of Vanguard Software Group were immaterial for the periods presented. The Company's consolidated statements of income for the first quarter of fiscal 2018 included revenue of $99 and an after-tax net loss of $115 resulting from Vanguard Software Group's operations. The accompanying consolidated statements of income for the three months ended September 30, 2017 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided. |
Reportable Segment Information
Reportable Segment Information (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Information Disclosure [Text Block] | REPORTABLE SEGMENT INFORMATION The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions. Beginning in the first quarter of fiscal 2018, JHA changed its reportable segment structure from two customer-centric segments, Bank and Credit Union, to four product-centric segments. The change was made based on the view of our Chief Executive Officer, who is also our Chief Operating Decision Maker, that the Company could be more effectively managed using a product-centric approach and was driven by the first budgetary process under his administration. He requested changes in reports he regularly reviews for the purposes of allocating resources and assessing performance. The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate & Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/ member information. The Payments segment provides secure payment processing tools and services, including: ATM, debit, and credit card processing services; online and mobile bill pay solutions; and risk management products and services. The Complementary segment provides additional software and services that can be integrated with our Core solutions or used independently. The Corporate & Other segment includes hardware revenue and costs, as well as operating costs not directly attributable to the other three segments. The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. The prior period presented has been retroactively restated to conform to the new segment structure. Three Months Ended September 30, 2017 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 122,068 $ 9,087 $ 79,068 $ 14,072 $ 224,295 Processing 6,864 114,067 14,704 4 135,639 Total Revenue 128,932 123,154 93,772 14,076 359,934 Cost of Revenue 56,262 57,266 40,477 50,710 204,715 Research and Development 20,929 Selling, General, and Administrative 43,733 Gain on Disposal of Businesses (1,705 ) Total Expenses 267,672 SEGMENT INCOME $ 72,670 $ 65,888 $ 53,295 $ (36,634 ) OPERATING INCOME 92,262 INTEREST INCOME (EXPENSE) (42 ) INCOME BEFORE INCOME TAXES $ 92,220 Three Months Ended September 30, 2016 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 110,795 $ 13,593 $ 78,277 $ 14,825 $ 217,490 Processing 6,112 108,737 12,652 37 127,538 Total Revenue 116,907 122,330 90,929 14,862 345,028 Cost of Revenue 52,750 56,020 38,826 47,167 194,763 Research and Development 19,739 Selling, General, and Administrative 39,109 Gain on Disposal of Businesses — Total Expenses 253,611 SEGMENT INCOME $ 64,157 $ 66,310 $ 52,103 $ (32,305 ) OPERATING INCOME 91,417 INTEREST INCOME (EXPENSE) (34 ) INCOME BEFORE INCOME TAXES $ 91,383 The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Operating Decision Maker. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Text Block) | 3 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Dividends On November 9, 2017 , the Company's Board of Directors declared a cash dividend of $0.31 per share on its common stock, payable on December 15, 2017 to shareholders of record on November 30, 2017 . |
Nature of Operations and Summ16
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
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. |
Property, Plant and Equipment, Impairment [Policy Text Block] | Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | 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 with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years. |
Common Stock | The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. |
Fair Value of Financial Instr17
Fair Value of Financial Instruments Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
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 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) | 3 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements[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 September 30, 2017 Financial Assets: Money market funds $ 65,491 $ — $ — $ 65,491 Certificate of Deposit $ — $ 2,001 $ — $ 2,001 Financial Liabilities: Revolving credit facility $ — $ — $ — $ — June 30, 2017 Financial Assets: Money market funds $ 68,474 $ — $ — $ 68,474 Certificate of Deposit $ — $ 2,001 $ — $ 2,001 Financial Liabilities: Revolving credit facility $ — $ 50,000 $ — $ 50,000 |
Non-Recurring Fair Value Measurements [Table Text Block] | Non-Recurring Fair Value Measurements June 30, 2017 Long-lived assets held for sale (a) $ — $ 1,300 $ — $ 1,300 (a) In accordance with ASC Subtopic 360-10, long-lived assets held for sale with a carrying value of $4,575 were written down to their fair value of $1,300 , resulting in an impairment totaling $3,275 , which was included in earnings for the period ended June 30, 2017 . These assets are expected to be disposed of by sale within twelve months of June 30, 2017. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
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 is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding July 1, 2017 72 $ 50.04 Granted — — Forfeited — — Exercised — — Outstanding September 30, 2017 72 $ 50.04 $ 3,781 Vested and Expected to Vest September 30, 2017 72 $ 50.04 $ 3,781 Exercisable September 30, 2017 40 $ 20.55 $ 3,290 |
Schedule of Nonvested Restricted Stock Activity [Table Text Block] | The following table summarizes non-vested share awards as of September 30, 2017 , as well as activity for the three months then ended: Share awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2017 36 $ 73.66 Granted — — Vested (11 ) 57.60 Forfeited — 64.96 Outstanding September 30, 2017 25 $ 80.28 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes non-vested unit awards as of September 30, 2017 , as well as activity for the three months then ended: Unit awards Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding July 1, 2017 386 $ 67.84 Granted 83 90.11 Vested (139 ) 53.80 Forfeited (3 ) 75.36 Outstanding September 30, 2017 327 $ 79.38 $ 33,659 |
ScheduleOfShareBasedPaymentAwardRSUValuationAssumptionsTableTextBlock [Table Text Block] | The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 81 unit awards granted in fiscal 2018 are as follows: Volatility 15.60 % Risk free interest rate 1.55 % Dividend yield 1.20 % Stock Beta 0.687 |
Earnings Per Share Earnings P20
Earnings Per Share Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 2016 Net Income $ 63,411 $ 62,244 Common share information: Weighted average shares outstanding for basic earnings per share 77,283 78,413 Dilutive effect of stock options and restricted stock 363 431 Weighted average shares outstanding for diluted earnings per share 77,646 78,844 Basic earnings per share $ 0.82 $ 0.79 Diluted earnings per share $ 0.82 $ 0.79 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Management has completed a preliminary purchase price allocation of Vanguard Software Group 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 August 31, 2017 are set forth below: Current assets $ 1,153 Long-term assets 14 Identifiable intangible assets 4,195 Total liabilities assumed (1,117 ) Total identifiable net assets 4,245 Goodwill 6,499 Net assets acquired $ 10,744 |
Reportable Segment Informatio22
Reportable Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended September 30, 2017 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 122,068 $ 9,087 $ 79,068 $ 14,072 $ 224,295 Processing 6,864 114,067 14,704 4 135,639 Total Revenue 128,932 123,154 93,772 14,076 359,934 Cost of Revenue 56,262 57,266 40,477 50,710 204,715 Research and Development 20,929 Selling, General, and Administrative 43,733 Gain on Disposal of Businesses (1,705 ) Total Expenses 267,672 SEGMENT INCOME $ 72,670 $ 65,888 $ 53,295 $ (36,634 ) OPERATING INCOME 92,262 INTEREST INCOME (EXPENSE) (42 ) INCOME BEFORE INCOME TAXES $ 92,220 Three Months Ended September 30, 2016 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 110,795 $ 13,593 $ 78,277 $ 14,825 $ 217,490 Processing 6,112 108,737 12,652 37 127,538 Total Revenue 116,907 122,330 90,929 14,862 345,028 Cost of Revenue 52,750 56,020 38,826 47,167 194,763 Research and Development 19,739 Selling, General, and Administrative 39,109 Gain on Disposal of Businesses — Total Expenses 253,611 SEGMENT INCOME $ 64,157 $ 66,310 $ 52,103 $ (32,305 ) OPERATING INCOME 91,417 INTEREST INCOME (EXPENSE) (34 ) INCOME BEFORE INCOME TAXES $ 91,383 |
Nature of Operations and Summ23
Nature of Operations and Summary of Significant Accounting Policies Property and Equipment and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Property and Equipment and Intangible Assets [Abstract] | ||
Accumulated Depreciation, Property and Equipment | $ 356,559 | $ 345,014 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 527,487 | $ 503,653 |
Nature of Operations and Summ24
Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Class of Stock Disclosures [Abstract] | |||
Treasury Stock, Shares | 25,961,920 | 25,660,212 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 4,029,000 | 4,330,000 | |
Treasury Stock, Value | $ 1,036,292 | $ 1,006,274 | |
Treasury Stock, Shares, Acquired | 302,000 | ||
Payments for Repurchase of Common Stock | $ 30,018 | $ 61,338 |
Nature of Operations and Summ25
Nature of Operations and Summary of Significant Accounting Policies Dividends Paid Per Share (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||
Dividends declared per share | $ 0.31 | $ 0.28 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held for sale, carrying value prior to impairment | $ 4,575 | |
Impairment of Long-Lived Assets to be Disposed of | 3,275 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held-for-sale | 1,300 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held-for-sale | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held-for-sale | 1,300 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets held-for-sale | 0 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 50,000 | $ 0 |
Line of Credit [Member] | Revolving Credit Facility [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 0 | 0 |
Line of Credit [Member] | Revolving Credit Facility [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 50,000 | 0 |
Line of Credit [Member] | Revolving Credit Facility [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of Credit, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 68,474 | 65,491 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | 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 | 68,474 | 65,491 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | 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 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | 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 |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,001 | 2,001 |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | 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 | 0 | 0 |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | 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 | 2,001 | 2,001 |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | 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 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | |||
Interest Paid | $ 189 | $ 96 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Loan, Unused Borrowing Capacity | $ 5,000 | ||
Unsecured Loan, Maturity Date | Apr. 30, 2019 | ||
Unsecured Loan, Amount Outstanding | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility, Current Borrowing Capacity | 300,000 | ||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 600,000 | ||
Revolving Credit Facility, Expiration Date | Feb. 20, 2020 | ||
Long-term Debt | $ 0 | $ 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 | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Percent | 31.20% | 31.90% | |
Income Taxes Paid | $ 747 | $ 1,446 | |
Unrecognized Tax Benefits | 5,660 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 4,188 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,051 | $ 1,304 | |
Minimum [Member] | |||
Expiration of statutes of limitations impact on UTB balance | 500 | ||
Maximum [Member] | |||
Expiration of statutes of limitations impact on UTB balance | $ 1,500 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation | $ 1,513 | $ 1,197 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 292 | |
Weighted average remaining contractual term, stock options | 1 year 274 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense yet to be recognized | $ 15,290 | |
Compensation expense yet to be recognized, period for recognition | 1 year 276 days | |
Granted, number of shares | 83 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense yet to be recognized | $ 828 | |
Compensation expense yet to be recognized, period for recognition | 1 year 7 days | |
Granted, number of shares | 0 | |
2015 EIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 3,000 | |
2015 EIP [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Termination Period After Death | 1 year | |
Share-based Compensation Arrangement by Share-based Payment Award, Termination After Grant Date | 10 years | |
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 | 81 | |
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 | 2 |
Stock Based Compensation Stock
Stock Based Compensation Stock Options (Details) - Employee Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, period start, number of shares | shares | 72 |
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 | 72 |
Outstanding, period start, weighted average exercise price | $ / shares | $ 50.04 |
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 | $ 50.04 |
Outstanding, period end, intrinsic value | $ | $ 3,781 |
Vested and expected to vest, period end, number of shares | shares | 72 |
Vested and expected to vest, period end, weighted average exercise price | $ / shares | $ 50.04 |
Vested and expected to vest, period end, intrinsic value | $ | $ 3,781 |
Exercisable, period end, number of shares | shares | 40 |
Exercisable, period end, weighted average exercise price | $ / shares | $ 20.55 |
Exercisable, period end, intrinsic value | $ | $ 3,290 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Share Awards (Details) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Sep. 30, 2017$ / 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 | 36 |
Granted, number of shares | shares | 0 |
Vested, number of shares | shares | (11) |
Forfeited, number of shares | shares | 0 |
Outstanding, period end, number of shares | shares | 25 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 73.66 |
Granted, weighted average grant date fair value | $ / shares | 0 |
Vested, weighted average grant date fair value | $ / shares | 57.60 |
Forfeited, weighted average grant date fair value | $ / shares | 64.96 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 80.28 |
Stock Based Compensation Rest32
Stock Based Compensation Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($)$ / 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 | 386 |
Granted, number of shares | shares | 83 |
Vested, number of shares | shares | (139) |
Forfeited, number of shares | shares | (3) |
Outstanding, period end, number of shares | shares | 327 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 67.84 |
Granted, weighted average grant date fair value | $ / shares | 90.11 |
Vested, weighted average grant date fair value | $ / shares | 53.80 |
Forfeited, weighted average grant date fair value | $ / shares | 75.36 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 79.38 |
Restricted Stock Units, Aggregate Intrinsic Value, Outstanding | $ | $ 33,659 |
Stock Based Compensation RSU Me
Stock Based Compensation RSU Measurement Date Assumptions (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Sep. 30, 2017 | |
RSU grant date weighted average fair value assumptions | |
Volatility | 15.60% |
Risk free interest rate | 1.55% |
Dividend yield | 1.20% |
Stock Beta | 0.687 |
Earnings Per Share Earnings P34
Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net Income | $ 63,411 | $ 62,244 |
Common share information: | ||
Weighted average shares outstanding for basic earnings per share | 77,283 | 78,413 |
Dilutive effect of stock options and restricted stock | 363 | 431 |
Weighted average shares outstanding for diluted earnings per share | 77,646 | 78,844 |
Basic earnings per share | $ 0.82 | $ 0.79 |
Diluted earnings per share | $ 0.82 | $ 0.79 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 32 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 558,831 | $ 552,465 | |
Vanguard Software Group [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Aug. 31, 2017 | ||
Payments to Acquire Businesses, Gross | $ 10,744 | ||
Current assets | 1,153 | ||
Long-term assets | 14 | ||
Identifiable intangible assets | 4,195 | ||
Total liabilities assumed | (1,117) | ||
Total identifiable net assets | 4,245 | ||
Net assets acquired | 10,744 | ||
Acquisition goodwill expected to be tax deductible | 6,499 | ||
Cash Acquired from Acquisition | 289 | ||
Business Combination, Acquired Receivables, Fair Value | 847 | ||
Business Combination, Acquired Receivables, Gross Contractual Amount | 847 | ||
Business Combination, Acquired Receivables, Estimated Uncollectible | 0 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 99 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (115) | ||
Customer Relationships [Member] | Vanguard Software Group [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 2,234 | ||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | ||
Computer Software, Intangible Asset [Member] | Vanguard Software Group [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 1,426 | ||
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years | ||
Other Intangible Assets [Member] | Vanguard Software Group [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable Intangible Assets Acquired | $ 535 | ||
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years | ||
Complementary [Member] | Vanguard Software Group [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 6,499 |
Reportable Segment Informatio36
Reportable Segment Information Narrative (Details) | 3 Months Ended |
Sep. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
Reportable Segment Informatio37
Reportable Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUE | ||
Services & Support | $ 224,295 | $ 217,490 |
Processing | 135,639 | 127,538 |
Total revenue | 359,934 | 345,028 |
COST OF REVENUE | 204,715 | 194,763 |
Research and Development | 20,929 | 19,739 |
Selling, General and Administrative | 43,733 | 39,109 |
Gain (Loss) on Disposition of Business | (1,705) | 0 |
Total Expenses | 267,672 | 253,611 |
OPERATING INCOME | 92,262 | 91,417 |
INTEREST INCOME (EXPENSE) | (42) | (34) |
INCOME BEFORE INCOME TAXES | 92,220 | 91,383 |
Core [Member] | ||
REVENUE | ||
Services & Support | 122,068 | 110,795 |
Processing | 6,864 | 6,112 |
Total revenue | 128,932 | 116,907 |
COST OF REVENUE | 56,262 | 52,750 |
SEGMENT INCOME | 72,670 | 64,157 |
Payments [Member] | ||
REVENUE | ||
Services & Support | 9,087 | 13,593 |
Processing | 114,067 | 108,737 |
Total revenue | 123,154 | 122,330 |
COST OF REVENUE | 57,266 | 56,020 |
SEGMENT INCOME | 65,888 | 66,310 |
Complementary [Member] | ||
REVENUE | ||
Services & Support | 79,068 | 78,277 |
Processing | 14,704 | 12,652 |
Total revenue | 93,772 | 90,929 |
COST OF REVENUE | 40,477 | 38,826 |
SEGMENT INCOME | 53,295 | 52,103 |
Corporate and Other [Member] | ||
REVENUE | ||
Services & Support | 14,072 | 14,825 |
Processing | 4 | 37 |
Total revenue | 14,076 | 14,862 |
COST OF REVENUE | 50,710 | 47,167 |
SEGMENT INCOME | $ (36,634) | $ (32,305) |
Subsequent Events Subsequent 38
Subsequent Events Subsequent Events (Details) - $ / shares | Nov. 09, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||
Dividends declared per share | $ 0.31 | $ 0.28 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | Nov. 9, 2017 | ||
Dividends declared per share | $ 0.31 | ||
Dividends Payable, Date to be Paid | Dec. 15, 2017 | ||
Dividends Payable, Date of Record | Nov. 30, 2017 |