Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2020 | Jan. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-30 | |
Entity Registrant Name | HENRY JACK & ASSOCIATES INC | |
Entity Central Index Key | 0000779152 | |
Entity File Number | 0-14112 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-1128385 | |
Entity Address, Address Line One | 663 Highway 60, P.O. Box 807 | |
Entity Address, City or Town | Monett | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 65708 | |
City Area Code | 417 | |
Local Phone Number | 235-6652 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | JKHY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 76,077,269 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 147,762 | $ 213,345 |
Receivables, net | 212,934 | 300,945 |
Income tax receivable | 8,662 | 21,051 |
Prepaid expenses and other | 98,540 | 95,525 |
Deferred costs | 50,586 | 38,235 |
Total current assets | 518,484 | 669,101 |
PROPERTY AND EQUIPMENT, net | 257,883 | 273,432 |
OTHER ASSETS: | ||
Non-current deferred costs | 122,016 | 113,525 |
Computer software, net of amortization | 351,327 | 340,466 |
Other non-current assets | 233,865 | 220,591 |
Other intangible assets, net of amortization | 28,866 | 29,917 |
Goodwill | 685,973 | 686,334 |
Total other assets | 1,510,342 | 1,485,941 |
Total assets | 2,286,709 | 2,428,474 |
CURRENT LIABILITIES: | ||
Accounts payable | 11,569 | 9,880 |
Accrued expenses | 145,878 | 166,689 |
Notes payable and current maturities of long-term debt | 117 | 115 |
Deferred revenues | 193,409 | 318,161 |
Total current liabilities | 350,973 | 494,845 |
LONG TERM LIABILITIES: | ||
Non-current deferred revenues | 69,474 | 71,461 |
Deferred income tax liability | 252,649 | 243,998 |
Debt, net of current maturities | 149 | 208 |
Other long-term liabilities | 68,285 | 68,274 |
Total long term liabilities | 390,557 | 383,941 |
Total liabilities | 741,530 | 878,786 |
STOCKHOLDERS' EQUITY | ||
Preferred stock - $1 par value; 500,000 shares authorized, none issued | 0 | 0 |
Common stock - $0.01 par value; 250,000,000 shares authorized; 103,736,703 shares issued at December 31, 2020; 103,622,563 shares issued at June 30, 2020 | 1,037 | 1,036 |
Additional paid-in capital | 503,205 | 495,005 |
Retained earnings | 2,332,509 | 2,235,320 |
Less treasury stock at cost; 27,667,903 shares at December 31, 2020; 26,992,903 shares at June 30, 2020 | (1,291,572) | (1,181,673) |
Total stockholders' equity | 1,545,179 | 1,549,688 |
Total liabilities and equity | 2,286,709 | 2,428,474 |
Customer Relationships [Member] | ||
OTHER ASSETS: | ||
Customer relationships, net of amortization | $ 88,295 | $ 95,108 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Dec. 31, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
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 | 103,736,703 | 103,622,563 |
Treasury Stock, Shares | 27,667,903 | 26,992,903 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
REVENUE | $ 422,361 | $ 419,119 | $ 874,161 | $ 857,124 |
EXPENSES | ||||
Cost of Revenue | 257,782 | 249,267 | 520,711 | 495,058 |
Research and Development | 26,780 | 27,187 | 52,837 | 51,778 |
Selling, General and Administrative | 44,167 | 48,961 | 89,393 | 98,396 |
Total Expenses | 328,729 | 325,415 | 662,941 | 645,232 |
OPERATING INCOME | 93,632 | 93,704 | 211,220 | 211,892 |
INTEREST INCOME (EXPENSE) | ||||
Interest income | 52 | 346 | 120 | 853 |
Interest expense | (117) | (156) | (235) | (312) |
Total Interest Income (Expense) | (65) | 190 | (115) | 541 |
INCOME BEFORE INCOME TAXES | 93,567 | 93,894 | 211,105 | 212,433 |
PROVISION FOR INCOME TAXES | 21,585 | 21,796 | 47,907 | 50,965 |
NET INCOME | $ 71,982 | $ 72,098 | $ 163,198 | $ 161,468 |
Earnings Per Share | ||||
Basic earnings per share | $ 0.94 | $ 0.94 | $ 2.14 | $ 2.10 |
Basic weighted average shares outstanding | 76,202 | 76,879 | 76,354 | 76,926 |
Diluted earnings per share | $ 0.94 | $ 0.94 | $ 2.13 | $ 2.10 |
Diluted weighted average shares outstanding | 76,280 | 76,935 | 76,496 | 77,001 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance, beginning of period (value) at Jun. 30, 2019 | $ 1,035 | $ 472,030 | $ 2,066,073 | $ (1,110,124) | ||
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Jun. 30, 2019 | 0 | |||||
Shares, beginning of period at Jun. 30, 2019 | 103,496,026 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 38,482 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 37,621 | |||||
Shares issued for equity-based payment arrangements (value) | $ (1) | (1) | ||||
Tax withholding related to share-based compensation | (2,625) | |||||
Shares issued for Employee Stock Purchase Plan (value) | 4,603 | |||||
Stock-based compensation expense | 6,998 | |||||
Net Income | $ 161,468 | 161,468 | ||||
Dividends | (61,502) | |||||
Purchase of treasury shares | (51,210) | |||||
Balance, end of period (value) at Dec. 31, 2019 | $ 1,486,746 | $ 1,036 | 481,005 | 2,166,039 | (1,161,334) | |
Shares, end of period at Dec. 31, 2019 | 103,572,129 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.80 | |||||
Balance, beginning of period (value) at Sep. 30, 2019 | $ 1,035 | 475,222 | 2,124,672 | (1,124,269) | ||
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Sep. 30, 2019 | 0 | |||||
Shares, beginning of period at Sep. 30, 2019 | 103,535,828 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 18,594 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 17,707 | |||||
Shares issued for equity-based payment arrangements (value) | $ (1) | 0 | ||||
Tax withholding related to share-based compensation | (553) | |||||
Shares issued for Employee Stock Purchase Plan (value) | 2,191 | |||||
Stock-based compensation expense | 4,145 | |||||
Net Income | $ 72,098 | 72,098 | ||||
Dividends | (30,731) | |||||
Purchase of treasury shares | (37,065) | |||||
Balance, end of period (value) at Dec. 31, 2019 | $ 1,486,746 | $ 1,036 | 481,005 | 2,166,039 | (1,161,334) | |
Shares, end of period at Dec. 31, 2019 | 103,572,129 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.40 | |||||
Preferred Shares | 0 | |||||
Balance, beginning of period (value) at Jun. 30, 2020 | $ 1,549,688 | $ 1,036 | 495,005 | 2,235,320 | (1,181,673) | |
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Jun. 30, 2020 | (493) | |||||
Shares, beginning of period at Jun. 30, 2020 | 103,622,563 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 78,414 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 35,726 | |||||
Shares issued for equity-based payment arrangements (value) | $ (1) | (1) | ||||
Tax withholding related to share-based compensation | (6,689) | |||||
Shares issued for Employee Stock Purchase Plan (value) | 5,138 | |||||
Stock-based compensation expense | 9,752 | |||||
Net Income | 163,198 | 163,198 | ||||
Dividends | (65,516) | |||||
Purchase of treasury shares | (109,899) | |||||
Balance, end of period (value) at Dec. 31, 2020 | $ 1,545,179 | $ 1,037 | 503,205 | 2,332,509 | (1,291,572) | |
Shares, end of period at Dec. 31, 2020 | 103,736,703 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.86 | |||||
Balance, beginning of period (value) at Sep. 30, 2020 | $ 1,037 | 497,030 | 2,293,229 | (1,247,546) | ||
Balance, beginning of period (value) (Accounting Standards Update 2016-13) at Sep. 30, 2020 | 0 | |||||
Shares, beginning of period at Sep. 30, 2020 | 103,696,962 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 23,412 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 16,329 | |||||
Shares issued for equity-based payment arrangements (value) | $ 0 | 0 | ||||
Tax withholding related to share-based compensation | (1,184) | |||||
Shares issued for Employee Stock Purchase Plan (value) | 2,232 | |||||
Stock-based compensation expense | 5,127 | |||||
Net Income | $ 71,982 | 71,982 | ||||
Dividends | (32,702) | |||||
Purchase of treasury shares | (44,026) | |||||
Balance, end of period (value) at Dec. 31, 2020 | $ 1,545,179 | $ 1,037 | $ 503,205 | $ 2,332,509 | $ (1,291,572) | |
Shares, end of period at Dec. 31, 2020 | 103,736,703 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.43 | |||||
Preferred Shares | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 163,198 | $ 161,468 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 26,652 | 25,364 |
Amortization | 61,164 | 58,873 |
Change in deferred income taxes | 8,651 | 4,134 |
Expense for stock-based compensation | 9,752 | 6,998 |
(Gain) Loss on Disposal of Assets | (2,019) | (103) |
Changes in operating assets and liabilities: | ||
Change in receivables | 87,518 | 106,782 |
Change in prepaid expenses, deferred costs and other | (26,109) | (21,911) |
Change in accounts payable | 16 | (262) |
Change in accrued expenses | (22,627) | (28,702) |
Change in income taxes | 13,922 | 19,861 |
Change in deferred revenues | (126,134) | (117,489) |
Net cash from operating activities | 193,984 | 215,013 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payment for acquisitions, net of cash acquired | 0 | (30,376) |
Capital expenditures | (9,543) | (30,758) |
Proceeds from dispositions | 6,157 | 326 |
Purchased Software | (4,254) | (5,551) |
Computer software developed | (62,804) | (57,886) |
Purchase of Investments | (12,100) | (1,150) |
Net cash from investing activities | (82,544) | (125,395) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments on financing leases | (57) | 0 |
Purchase of treasury stock | (109,899) | (51,210) |
Dividends paid | (65,516) | (61,502) |
Tax withholding payments related to share based compensation | (6,689) | (2,624) |
Proceeds from sale of common stock | 5,138 | 4,603 |
Net cash from financing activities | (177,023) | (110,733) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (65,583) | (21,115) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 213,345 | 93,628 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 147,762 | $ 72,513 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies [Text Block] | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Company Jack Henry & Associates, Inc. and subsidiaries ("Jack Henry," "JKHY," or the "Company") is a provider of integrated computer systems and services. The Company has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide together with computer equipment (hardware), by providing the conversion and implementation services for financial institutions to utilize JKHY systems, and by providing other related services. JKHY also provides continuing support and services to customers using on-premise or JKHY cloud-based systems. Consolidation The condensed consolidated financial statements include the accounts of JKHY and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated. Comprehensive Income Comprehensive income for the three and six months ended December 31, 2020 and 2019 equals the Company’s net income. Change in Accounting Policy The Company adopted FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses, ("CECL") with an adoption date of July 1, 2020 (see Note 2). As a result, the Company changed its accounting policy for allowance for credit losses. The accounting policy pursuant to CECL is disclosed below. The adoption of CECL resulted in an immaterial cumulative effect adjustment recorded in retained earnings as of July 1, 2020. Allowance for Credit Losses The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended December 31, 2020: Three Months Ended December 31, 2020 Six Months Ended December 31, 2020 Allowance for credit losses - beginning balance $ 6,731 $ 6,719 Cumulative effect of accounting standards update adoption — 493 Current provision for expected credit losses 370 910 Write-offs charged against allowance (263) (1,286) Recoveries of amounts previously written off (1) (4) Other (7) (2) Allowance for credit losses - ending balance $ 6,830 $ 6,830 While the novel coronavirus ("COVID-19") pandemic did not result in a significant increase in the Company’s expected credit loss allowance recorded as of December 31, 2020, the Company believes it is reasonably possible that future developments related to the economic impact of the COVID-19 pandemic could have a material impact on management’s estimates (see Use of Estimates below). Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Accumulated depreciation at December 31, 2020 totaled $415,044 and at June 30, 2020 totaled $404,388. Intangible Assets Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years. Accumulated amortization of intangible assets totaled $858,921 and $812,856 at December 31, 2020 and June 30, 2020, respectively. Purchase of Investments At June 30, 2020, the Company had an investment in the preferred stock of Automated Bookkeeping, Inc ("Autobooks") of $6,000. During the second quarter of fiscal 2021, the Company made an additional investment in Autobooks for a total investment at December 31, 2020 of $13,250, which represented a non-controlling share of the voting equity as of that date. The total investment was recorded at cost and is included within other non-current assets on the Company's balance sheet. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing a similar or identical investment. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair value will not be estimated unless there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Common Stock The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At December 31, 2020, there were 27,668 shares in treasury stock and the Company had the remaining authority to repurchase up to 2,323 additional shares. The total cost of treasury shares at December 31, 2020 was $1,291,572. During the first six months of fiscal 2021, the Company repurchased 675 shares for the treasury. At June 30, 2020, there were 26,993 shares in treasury stock and the Company had authority to repurchase up to 2,998 additional shares. The total cost of treasury shares at June 30, 2020 was $1,181,673. Income Taxes Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of deferred benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. Interim Financial Statements The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission ("SEC") and in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended June 30, 2020. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the fiscal year ended June 30, 2020, with updates to certain policies included in this Note 1. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly in all material respects the financial position of the Company as of December 31, 2020, the results of its operations for the three and six months ended December 31, 2020 and 2019, changes in stockholders' equity for the three and six months ended December 31, 2020 and 2019, and its cash flows for the six months ended December 31, 2020 and 2019. The condensed consolidated balance sheet at June 30, 2020 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements. The results of operations for the three and six months ended December 31, 2020 are not necessarily indicative of the results to be expected for the entire year. Use of Estimates The extent to which the COVID-19 pandemic will directly or indirectly impact our business and financial results, including revenue, expenses, cost of revenues, research and development, and selling, general and administrative expenses, will depend on future developments that are highly uncertain, such as new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19 (including the efficacy and distribution of any vaccines), as well as the economic impact on local, regional, national and international customers and markets. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for credit losses, as well as the carrying value of goodwill and other long-lived assets. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended December 31, 2020, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted Accounting Guidance [Text Block] | Recently Adopted Accounting Guidance In January 2017, the FASB issued Accounting Standard Update ("ASU") No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted ASU No. 2017-04 on July 1, 2020 and the adoption did not have a material impact on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), or CECL, which prescribes an impairment model for most financial instruments based on expected losses rather than incurred losses. Under this model, an estimate of expected credit losses over the contractual life of the instrument is to be recorded as of the end of a reporting period as an allowance to offset the amortized cost basis, resulting in a net presentation of the amount expected to be collected on the financial instrument. For most instruments, entities must apply the standard using a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company adopted CECL effective July 1, 2020 using the required modified retrospective approach, which resulted in a cumulative-effect decrease to beginning retained earnings of $493. Financial assets and liabilities held by the Company subject to the “expected credit loss” model prescribed by CECL include trade and other receivables as well as contract assets (see Note 1). |
Not Yet Adopted [Text Block] | Not Yet Adopted In December of 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions and simplifies other requirements of Topic 740 guidance. The ASU will be effective for the Company on July 1, 2021. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company plans to adopt ASU 2019-12 effective July 1, 2021 and does not expect the adoption to have a material impact on its consolidated financial statements. |
Revenue and Deferred Costs Reve
Revenue and Deferred Costs Revenue and Deferred Costs (Notes) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Deferred Costs [Text Block] | REVENUE AND DEFERRED COSTS Revenue Recognition The Company generates revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales. Disaggregation of Revenue The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue. Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Outsourcing & Cloud $ 124,498 $ 115,897 $ 245,456 $ 224,480 Product Delivery & Services 48,414 61,709 105,312 133,070 In-House Support 77,961 77,598 181,102 176,462 Services & Support 250,873 255,204 531,870 534,012 Processing 171,488 163,915 342,291 323,112 Total Revenue $ 422,361 $ 419,119 $ 874,161 $ 857,124 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. December 31, June 30, Receivables, net $ 212,934 $ 300,945 Contract Assets- Current 19,274 21,609 Contract Assets- Non-current 52,430 54,293 Contract Liabilities (Deferred Revenue)- Current 193,409 318,161 Contract Liabilities (Deferred Revenue)- Non-current 69,474 71,461 Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, but where invoicing is contingent upon the completion of other performance obligations or payment terms differ from the provisioning of services. The current portion of contract assets is reported within prepaid expenses and other in the condensed consolidated balance sheet, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue) primarily relate to consideration received from customers in advance of delivery of the related goods and services to the customer. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company analyzes contract language to identify if a significant financing component does exist, and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction. During the three months ended December 31, 2020 and 2019, the Company recognized revenue of $79,421 and $84,613, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. For the six months ended December 31, 2020 and 2019, the Company recognized revenue of $156,666 and $155,625, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. Amounts recognized that relate to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price re-allocations due to changes in estimates of variable consideration. Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2020, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $4,139,497. The Company expects to recognize approximately 27% over the next 12 months, 20% in 13-24 months, and the balance thereafter. Contract Costs The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and customer conversion or implementation-related costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated. Capitalized costs totaled $296,757 and $271,010, at December 31, 2020 and June 30, 2020, respectively. For the three months ended December 31, 2020 and 2019, amortization of deferred contract costs was $28,795 and $27,821, respectively. During the six months ended December 31, 2020 and 2019, amortization of deferred contract costs totaled $62,620 and $59,214, respectively. There were no impairment losses in relation to capitalized costs for the periods presented. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments[Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities. The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows: Level 1: inputs to the valuation are quoted prices in an active market for identical assets Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset Fair value of financial assets included in current assets is as follows: Estimated Fair Value Measurements Total Fair Level 1 Level 2 Level 3 Value December 31, 2020 Financial Assets: Certificate of Deposit $ — $ 5,000 $ — $ 5,000 June 30, 2020 Financial Assets: Certificate of Deposit $ — $ — $ — $ — |
Leases Leases (Notes)
Leases Leases (Notes) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company leases certain office space, data centers and equipment with remaining terms of 1 to 13 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. Variable lease costs are recognized as a variable lease expense when incurred. At December 31, 2020 and June 30, 2020, the Company had operating lease assets of $62,021 and $63,948 and financing lease assets of $260 and $318, respectively. At December 31, 2020, total operating lease liabilities of $66,765 were comprised of current operating lease liabilities of $11,690 and noncurrent operating lease liabilities of $55,075, and total financing lease liabilities of $266 were comprised of current financing lease liabilities of $117 and noncurrent financing lease liabilities of $149. At June 30, 2020, total operating lease liabilities of $68,309 were comprised of current operating lease liabilities of $11,712 and noncurrent operating lease liabilities of $56,597, and total financing lease liabilities of $323 were comprised of current financing lease liabilities of $115 and noncurrent financing lease liabilities of $208. Operating lease assets are included within other non-current assets and operating lease liabilities are included within accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s condensed consolidated balance sheet. Operating lease assets were recorded net of accumulated amortization of $18,807 and $13,719 as of December 31, 2020 and June 30, 2020, respectively. Financing lease assets are included within property and equipment, net and financing lease liabilities are included within notes payable (current portion) and long-term debt (noncurrent portion) in the Company’s condensed consolidated balance sheet. Financing lease assets were recorded net of accumulated amortization of $96 and $38 as of December 31, 2020 and June 30, 2020, respectively. Operating lease costs for the three months ended December 31, 2020 and 2019 were $3,766 and $4,024, respectively. Operating lease costs for the six months ended December 31, 2020 and 2019 were $7,675 and $8,031, respectively. Financing lease costs for the three and six months ended December 31, 2020 and 2019 were $30 and $0, respectively. Total operating and financing lease costs for the respective quarters included variable lease costs of approximately $809 and $780. Total operating and financing lease costs for the respective year-to-date periods included variable lease costs of approximately $2,189 and $1,659. Operating and financing lease expense are included within cost of services, research and development, and selling, general & administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of income. For the six months ended December 31, 2020 and 2019, the Company had operating cash flows for payments on operating leases of $6,872 and $7,803, and right-of-use assets obtained in exchange for operating lease liabilities of $4,485 and $1,370, respectively. Operating cash flows for interest paid on financing leases for the six months ended December 31, 2020 and 2019 were $4 and $0, respectively. As of December 31, 2020 and June 30, 2020, the weighted-average remaining lease term for the Company's operating leases was 84 months and 88 months and the weighted-average discount rate was 2.66% and 2.76%, respectively. As of December 31, 2020 and June 30, 2020 the weighted-average remaining lease term for the Company's financing leases was 27 months and 33 months, respectively. The weighted-average discount rate for the Company's financing leases was 2.42% as of December 31, 2020 and June 30, 2020. Maturity of Lease Liabilities under ASC 842 Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2020*: Due Dates (fiscal year) Future Minimum Rental Payments 2021 (remaining period) $ 6,569 2022 13,233 2023 11,772 2024 9,640 2025 6,899 Thereafter 25,164 Total lease payments $ 73,277 Less: interest (6,512) Present value of lease liabilities $ 66,765 * Financing leases were immaterial to the quarter, so a maturity of lease liabilities table has only been included for operating leases. Lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At December 31, 2020, there were no legally binding lease payments for leases signed but not yet commenced. |
Debt (Text Block)
Debt (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | DEBT Revolving credit facility On February 10, 2020, the Company entered into a five-year senior, unsecured revolving credit facility. The credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $700,000. The credit facility bears interest at a variable rate equal to (a) a rate based on a eurocurrency rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the U.S. Bank prime rate ("Prime Rate") for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iv) the eurocurrency rate for a one-month interest period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit facility agreement. As of December 31, 2020, the Company was in compliance with all such covenants. The revolving credit facility terminates February 10, 2025. There was no outstanding balance under the credit facility at December 31, 2020 or June 30, 2020. Other lines of credit The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires on April 30, 2021. There was no balance outstanding at December 31, 2020 or June 30, 2020. Interest The Company paid interest of $105 and $193 during the six months ended December 31, 2020 and 2019, respectively. |
Income Taxes (Text Block)
Income Taxes (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The effective tax rate was 23.1% and 23.2% of income before income taxes for the three months ended December 31, 2020 and 2019, respectively. For the six months ended December 31, 2020 and 2019, the effective tax rate was 22.7% and 24.0%, respectively. The decrease in the Company's fiscal year-to-date tax rate was primarily due to the difference in impact of share-based compensation that vested during each of the periods. The Company paid income taxes, net of refunds, of $24,794 and $26,262 in the six months ended December 31, 2020 and 2019, respectively. At December 31, 2020, the Company had $11,314 of gross unrecognized tax benefits, $10,496 of which, if recognized, would affect our effective tax rate. The Company had accrued interest and penalties of $1,896 and $1,883 related to uncertain tax positions at December 31, 2020 and 2019, respectively. |
Stock Based Compensation (Text
Stock Based Compensation (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION Our operating income for the three months ended December 31, 2020 and 2019 included $5,127 and $4,145 of stock-based compensation costs, respectively. Our operating income for the six months ended December 31, 2020 and 2019 included $9,752 and $6,998 of stock-based compensation costs, respectively. Stock Options On November 10, 2015, the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000. For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant. A summary of option plan activity under this plan is as follows: Number of Shares Weighted Average Exercise Price Aggregate Outstanding July 1, 2020 22 $ 87.27 Granted — — Forfeited — — Exercised — — Outstanding December 31, 2020 22 $ 87.27 $ 1,620 Vested and Expected to Vest December 31, 2020 22 $ 87.27 $ 1,620 Exercisable December 31, 2020 22 $ 87.27 $ 1,620 At December 31, 2020, there was no compensation cost yet to be recognized related to outstanding options. For options currently exercisable, the weighted average remaining contractual term (remaining period of exercisability) as of December 31, 2020 was 5.50 years. Restricted Stock Unit Awards The Company issues unit awards under the 2015 EIP. The following table summarizes non-vested restricted stock unit awards as of December 31, 2020: Unit awards Units Weighted Aggregate Intrinsic Value Outstanding July 1, 2020 307 $ 136.41 Granted 73 185.52 Vested (102) 104.57 Forfeited — — Outstanding December 31, 2020 278 $ 161.09 $ 44,979 The 73 unit awards granted in fiscal 2021 had service requirements and performance targets, with 38 only having service requirements. Those 38 were valued at the weighted-average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. The remaining 35 unit awards granted in fiscal 2021 had performance targets along with service requirements, all of which were valued using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design to value the unit awards as of the grant date. Per the Company's award vesting and settlement provisions, approximately half of the awards that utilize a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return (TSR) in comparison to the compensation peer group made up of participants approved by the Compensation Committee of the Company's Board of Directors for fiscal year 2021, and the other half of the awards utilizing a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return in comparison to the Standard & Poor's 1500 Information Technology Index (S&P 1500 IT Index) participants. The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows. Compensation Peer Group S&P 1500 IT Index Volatility 25.17 % 25.17 % Risk free interest rate 0.11 % 0.11 % Annual dividend based on most recent quarterly dividend 1.72 1.72 Beginning TSR 37 % 30 % At December 31, 2020, there was $23,610 of compensation expense, excluding forfeitures, that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.52 years. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, Six Months Ended December 31, 2020 2019 2020 2019 Net Income $ 71,982 $ 72,098 $ 163,198 $ 161,468 Common share information: Weighted average shares outstanding for basic earnings per share 76,202 76,879 76,354 76,926 Dilutive effect of stock options and restricted stock 78 56 142 75 Weighted average shares outstanding for diluted earnings per share 76,280 76,935 76,496 77,001 Basic earnings per share $ 0.94 $ 0.94 $ 2.14 $ 2.10 Diluted earnings per share $ 0.94 $ 0.94 $ 2.13 $ 2.10 Per share information is based on the weighted average number of common shares outstanding for the three and six months ended December 31, 2020 and 2019. Stock options and restricted stock units have been included in the calculation of earnings per share to the extent they are dilutive. There were 21 anti-dilutive stock options or restricted stock units excluded for the quarter ended December 31, 2020 and 50 excluded for the quarter ended December 31, 2019. There were 21 anti-dilutive stock options or restricted stock units excluded for the six months ended December 31, 2020 and 37 excluded for the six months ended December 31, 2019. |
Business Acquisitions (Text Blo
Business Acquisitions (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Business Acquisition Disclosure [Text Block] | BUSINESS ACQUISITIONS Geezeo On July 1, 2019, the Company acquired all of the equity interest of DebtFolio, Inc. ("Geezeo") for $37,776 paid in cash. The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by cash generated from operations. Geezeo is a Boston-based provider of retail and business digital financial management solutions. Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below: Current assets $ 8,925 Long-term assets 397 Identifiable intangible assets 19,114 Deferred income tax liability (2,593) Total other liabilities assumed (7,457) Total identifiable net assets 18,386 Goodwill 19,390 Net assets acquired $ 37,776 The goodwill of $19,390 arising from this acquisition consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of Geezeo, together with the value of Geezeo's assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is not deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $10,522, computer software of $5,791, and other intangible assets of $2,801. The amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years for each. Current assets were inclusive of cash acquired of $7,400. The fair value of current assets acquired included accounts receivable of $1,373, none of which were expected to be uncollectible. Costs incurred related to the acquisition of Geezeo in fiscal 2020 totaled $30 for professional services, travel, and other fees, and were expensed as incurred and reported within cost of revenue and selling, general, and administrative expense. The Company's condensed consolidated statements of income for the three months ended December 31, 2020 included revenue of $3,273 and after-tax net income of $1,156 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the three months ended December 31, 2019 included revenue of $2,040 and after-tax net income of $140 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the six months ended December 31, 2020 included revenue of $6,486 and after-tax net income of $2,222 resulting from Geezeo's operations. The Company's condensed consolidated statements of income for the six months ended December 31, 2019 included revenue of $4,432 and after-tax net income of $178 resulting from Geezeo's operations. The accompanying condensed consolidated statements of income for the three and six months ended December 31, 2020 and 2019 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to the current and prior periods of our condensed consolidated financial statements and pro forma financial information has not been provided. |
Reportable Segment Information
Reportable Segment Information (Text Block) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segment Information Disclosure [Text Block] | REPORTABLE SEGMENT INFORMATION The Company is a provider of integrated computer systems that perform data processing (available for on-premise installations or JKHY cloud-based services) for banks and credit unions. The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate & Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card transaction processing services, online and mobile bill pay solutions, Automated Clearing House ("ACH") origination and remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software and services that can be integrated with our Core solutions 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. Only revenue and costs of revenue are considered in the evaluation for each segment. During the second quarter of fiscal 2021, Jack Henry's call center was consolidated into the Complementary segment. As a result of this consolidation, an immaterial adjustment was made during the second quarter of fiscal 2021 to reclassify revenue and related costs recognized during the three and six months ended December, 31, 2019 from the Core to the Complementary segment. The revenue amounts reclassified were $4,845 for three months ended December 31, 2019, and $9,475 for the six months ended December 31, 2019. The cost of revenue amounts reclassified were $2,866 for the three months ended December 31, 2019, and $5,550 for the six months ended December 31, 2019. An additional immaterial adjustment was made after the quarter ended December 31, 2019 to reclassify cost of revenue recognized in the year-to-date period of fiscal 2020 from the Corporate & Other to the Payments segment to be consistent with the current allocation of cost of revenue by segment. The amount reclassified totaled $131 for the three and six months ended December 31, 2019. Three Months Ended December 31, 2020 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 126,758 $ 14,807 $ 98,829 $ 10,479 $ 250,873 Processing 8,190 140,375 22,579 344 171,488 Total Revenue 134,948 155,182 121,408 10,823 422,361 Cost of Revenue 58,519 86,455 52,407 60,401 257,782 Research and Development 26,780 Selling, General, and Administrative 44,167 Total Expenses 328,729 SEGMENT INCOME $ 76,429 $ 68,727 $ 69,001 $ (49,578) OPERATING INCOME 93,632 INTEREST INCOME (EXPENSE) (65) INCOME BEFORE INCOME TAXES $ 93,567 Three Months Ended December 31, 2019 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 125,937 $ 14,829 $ 99,323 $ 15,115 $ 255,204 Processing 7,586 137,216 19,006 107 163,915 Total Revenue 133,523 152,045 118,329 15,222 419,119 Cost of Revenue 58,377 79,266 50,885 60,739 249,267 Research and Development 27,187 Selling, General, and Administrative 48,961 Total Expenses 325,415 SEGMENT INCOME $ 75,146 $ 72,779 $ 67,444 $ (45,517) OPERATING INCOME 93,704 INTEREST INCOME (EXPENSE) 190 INCOME BEFORE INCOME TAXES $ 93,894 Six Months Ended December 31, 2020 Core Payments Complementary Corporate & Other Total REVENUE Services and Support 271,344 31,111 207,378 22,037 531,870 Processing 16,759 280,804 44,384 344 342,291 Total Revenue 288,103 311,915 251,762 22,381 874,161 Cost of Revenue 122,410 172,783 104,431 121,087 520,711 Research and Development 52,837 Selling, General, and Administrative 89,393 Total Expenses 662,941 SEGMENT INCOME $ 165,693 $ 139,132 $ 147,331 $ (98,706) OPERATING INCOME 211,220 INTEREST INCOME (EXPENSE) (115) INCOME BEFORE INCOME TAXES $ 211,105 Six Months Ended December 31, 2019 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 269,398 $ 32,137 $ 202,404 $ 30,073 $ 534,012 Processing 15,392 269,654 37,750 316 323,112 Total Revenue 284,790 301,791 240,154 30,389 857,124 Cost of Revenue 118,999 155,890 100,242 119,927 495,058 Research and Development 51,778 Selling, General, and Administrative 98,396 Total Expenses 645,232 SEGMENT INCOME $ 165,791 $ 145,901 $ 139,912 $ (89,538) OPERATING INCOME 211,892 INTEREST INCOME (EXPENSE) 541 INCOME BEFORE INCOME TAXES $ 212,433 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) | 6 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTSNone. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of JKHY and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated. |
Allowance for Credit Losses | The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. |
Property, Plant and Equipment | Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. |
Intangible Assets | Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years. |
Common Stock | The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. |
Income Tax, Policy | Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of deferred benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities. The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows: Level 1: inputs to the valuation are quoted prices in an active market for identical assets Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset |
Leases Leases (Policies)
Leases Leases (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company leases certain office space, data centers and equipment with remaining terms of 1 to 13 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies- Loss on Disposal of Assets, net (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes allowance for credit losses activity for the fiscal quarter and year-to-date period ended December 31, 2020: Three Months Ended December 31, 2020 Six Months Ended December 31, 2020 Allowance for credit losses - beginning balance $ 6,731 $ 6,719 Cumulative effect of accounting standards update adoption — 493 Current provision for expected credit losses 370 910 Write-offs charged against allowance (263) (1,286) Recoveries of amounts previously written off (1) (4) Other (7) (2) Allowance for credit losses - ending balance $ 6,830 $ 6,830 |
Revenue and Deferred Costs Re_2
Revenue and Deferred Costs Revenue and Deferred Costs (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue. Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Outsourcing & Cloud $ 124,498 $ 115,897 $ 245,456 $ 224,480 Product Delivery & Services 48,414 61,709 105,312 133,070 In-House Support 77,961 77,598 181,102 176,462 Services & Support 250,873 255,204 531,870 534,012 Processing 171,488 163,915 342,291 323,112 Total Revenue $ 422,361 $ 419,119 $ 874,161 $ 857,124 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. December 31, June 30, Receivables, net $ 212,934 $ 300,945 Contract Assets- Current 19,274 21,609 Contract Assets- Non-current 52,430 54,293 Contract Liabilities (Deferred Revenue)- Current 193,409 318,161 Contract Liabilities (Deferred Revenue)- Non-current 69,474 71,461 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements[Table Text Block] | Fair value of financial assets included in current assets is as follows: Estimated Fair Value Measurements Total Fair Level 1 Level 2 Level 3 Value December 31, 2020 Financial Assets: Certificate of Deposit $ — $ 5,000 $ — $ 5,000 June 30, 2020 Financial Assets: Certificate of Deposit $ — $ — $ — $ — |
Leases Leases (Tables)
Leases Leases (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Maturity of Lease Liabilities Under ASC 842 [Table Text Block] | Maturity of Lease Liabilities under ASC 842 Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2020*: Due Dates (fiscal year) Future Minimum Rental Payments 2021 (remaining period) $ 6,569 2022 13,233 2023 11,772 2024 9,640 2025 6,899 Thereafter 25,164 Total lease payments $ 73,277 Less: interest (6,512) Present value of lease liabilities $ 66,765 * Financing leases were immaterial to the quarter, so a maturity of lease liabilities table has only been included for operating leases. Lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At December 31, 2020, there were no legally binding lease payments for leases signed but not yet commenced. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of option plan activity under this plan is as follows: Number of Shares Weighted Average Exercise Price Aggregate Outstanding July 1, 2020 22 $ 87.27 Granted — — Forfeited — — Exercised — — Outstanding December 31, 2020 22 $ 87.27 $ 1,620 Vested and Expected to Vest December 31, 2020 22 $ 87.27 $ 1,620 Exercisable December 31, 2020 22 $ 87.27 $ 1,620 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes non-vested restricted stock unit awards as of December 31, 2020: Unit awards Units Weighted Aggregate Intrinsic Value Outstanding July 1, 2020 307 $ 136.41 Granted 73 185.52 Vested (102) 104.57 Forfeited — — Outstanding December 31, 2020 278 $ 161.09 $ 44,979 |
ScheduleOfShareBasedPaymentAwardRSUValuationAssumptionsTableTextBlock [Table Text Block] | The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows. Compensation Peer Group S&P 1500 IT Index Volatility 25.17 % 25.17 % Risk free interest rate 0.11 % 0.11 % Annual dividend based on most recent quarterly dividend 1.72 1.72 Beginning TSR 37 % 30 % |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, Six Months Ended December 31, 2020 2019 2020 2019 Net Income $ 71,982 $ 72,098 $ 163,198 $ 161,468 Common share information: Weighted average shares outstanding for basic earnings per share 76,202 76,879 76,354 76,926 Dilutive effect of stock options and restricted stock 78 56 142 75 Weighted average shares outstanding for diluted earnings per share 76,280 76,935 76,496 77,001 Basic earnings per share $ 0.94 $ 0.94 $ 2.14 $ 2.10 Diluted earnings per share $ 0.94 $ 0.94 $ 2.13 $ 2.10 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Geezeo [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below: Current assets $ 8,925 Long-term assets 397 Identifiable intangible assets 19,114 Deferred income tax liability (2,593) Total other liabilities assumed (7,457) Total identifiable net assets 18,386 Goodwill 19,390 Net assets acquired $ 37,776 |
Reportable Segment Informatio_2
Reportable Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended December 31, 2020 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 126,758 $ 14,807 $ 98,829 $ 10,479 $ 250,873 Processing 8,190 140,375 22,579 344 171,488 Total Revenue 134,948 155,182 121,408 10,823 422,361 Cost of Revenue 58,519 86,455 52,407 60,401 257,782 Research and Development 26,780 Selling, General, and Administrative 44,167 Total Expenses 328,729 SEGMENT INCOME $ 76,429 $ 68,727 $ 69,001 $ (49,578) OPERATING INCOME 93,632 INTEREST INCOME (EXPENSE) (65) INCOME BEFORE INCOME TAXES $ 93,567 Three Months Ended December 31, 2019 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 125,937 $ 14,829 $ 99,323 $ 15,115 $ 255,204 Processing 7,586 137,216 19,006 107 163,915 Total Revenue 133,523 152,045 118,329 15,222 419,119 Cost of Revenue 58,377 79,266 50,885 60,739 249,267 Research and Development 27,187 Selling, General, and Administrative 48,961 Total Expenses 325,415 SEGMENT INCOME $ 75,146 $ 72,779 $ 67,444 $ (45,517) OPERATING INCOME 93,704 INTEREST INCOME (EXPENSE) 190 INCOME BEFORE INCOME TAXES $ 93,894 Six Months Ended December 31, 2020 Core Payments Complementary Corporate & Other Total REVENUE Services and Support 271,344 31,111 207,378 22,037 531,870 Processing 16,759 280,804 44,384 344 342,291 Total Revenue 288,103 311,915 251,762 22,381 874,161 Cost of Revenue 122,410 172,783 104,431 121,087 520,711 Research and Development 52,837 Selling, General, and Administrative 89,393 Total Expenses 662,941 SEGMENT INCOME $ 165,693 $ 139,132 $ 147,331 $ (98,706) OPERATING INCOME 211,220 INTEREST INCOME (EXPENSE) (115) INCOME BEFORE INCOME TAXES $ 211,105 Six Months Ended December 31, 2019 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 269,398 $ 32,137 $ 202,404 $ 30,073 $ 534,012 Processing 15,392 269,654 37,750 316 323,112 Total Revenue 284,790 301,791 240,154 30,389 857,124 Cost of Revenue 118,999 155,890 100,242 119,927 495,058 Research and Development 51,778 Selling, General, and Administrative 98,396 Total Expenses 645,232 SEGMENT INCOME $ 165,791 $ 145,901 $ 139,912 $ (89,538) OPERATING INCOME 211,892 INTEREST INCOME (EXPENSE) 541 INCOME BEFORE INCOME TAXES $ 212,433 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses- beginning balance | $ 6,731 | $ 6,719 |
Current quarter provision for expected credit losses | 370 | 910 |
Write-offs charged against allowance | (263) | (1,286) |
Recoveries of amounts previously written off | (1) | (4) |
Other | (7) | (2) |
Allowance for credit losses- ending balance | 6,830 | 6,830 |
Accounting Standards Update 2016-13 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses- beginning balance | $ 0 | $ (493) |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Property, Plant and Equipment [Abstract] | ||
Accumulated Depreciation, Property and Equipment | $ 415,044 | $ 404,388 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 858,921 | $ 812,856 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies Purchase of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Automated Bookkeeping, Inc. [Member] | Preferred Stock [Member] | ||
Cost Method Investments, Original Cost | $ 13,250 | $ 6,000 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Class of Stock Disclosures [Abstract] | ||
Treasury Stock, Common, Shares | 27,668 | 26,993 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,323 | 2,998 |
Treasury Stock, Value | $ 1,291,572 | $ 1,181,673 |
Treasury Stock, Shares, Acquired | 675 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Recently Adopted Accounting Guidance (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting standards update upon adoption | $ (1,545,179) | $ (1,549,688) | $ (1,486,746) | |||
Retained Earnings [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting standards update upon adoption | $ (2,332,509) | $ (2,293,229) | (2,235,320) | $ (2,166,039) | $ (2,124,672) | $ (2,066,073) |
Accounting Standards Update 2016-13 | Retained Earnings [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting standards update upon adoption | $ 0 | $ 493 | $ 0 | $ 0 |
Revenue and Deferred Costs Disa
Revenue and Deferred Costs Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 422,361 | $ 419,119 | $ 874,161 | $ 857,124 |
Outsourcing & Cloud [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 124,498 | 115,897 | 245,456 | 224,480 |
Product Delivery & Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48,414 | 61,709 | 105,312 | 133,070 |
In-House Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 77,961 | 77,598 | 181,102 | 176,462 |
Services & Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 250,873 | 255,204 | 531,870 | 534,012 |
Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 171,488 | $ 163,915 | $ 342,291 | $ 323,112 |
Revenue and Deferred Costs Cont
Revenue and Deferred Costs Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, net | $ 212,934 | $ 300,945 |
Contract Assets- Current | 19,274 | 21,609 |
Contract Asset- Non-current | 52,430 | 54,293 |
Contract Liabilities (Deferred Revenue)- Current | 193,409 | 318,161 |
Contract Liabilities (Deferred Revenue)- Non- current | $ 69,474 | $ 71,461 |
Revenue and Deferred Costs Re_3
Revenue and Deferred Costs Revenue Recognition Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized from beginning deferred balance | $ 79,421 | $ 84,613 | $ 156,666 | $ 155,625 |
Future revenue related to unsatisfied performance obligations | $ 4,139,497 | $ 4,139,497 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Future revenue related to unsatisfied performance obligations, expected percentage to be recognized for given time frame | 27.00% | 27.00% | ||
Future revenue related to unsatisfied performance obligations, expected timing | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Future revenue related to unsatisfied performance obligations, expected percentage to be recognized for given time frame | 20.00% | 20.00% | ||
Future revenue related to unsatisfied performance obligations, expected timing | 12 months | 12 months |
Revenue and Deferred Costs Co_2
Revenue and Deferred Costs Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Capitalized Contract Cost | $ 296,757 | $ 296,757 | $ 271,010 | ||
Amortization of deferred contract costs | $ 28,795 | $ 27,821 | $ 62,620 | $ 59,214 |
Fair Value Measures and Discl_4
Fair Value Measures and Disclosures (Details) - Certificates of Deposit - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value Disclosure | $ 5,000 | $ 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value Disclosure | 5,000 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets, Fair Value Disclosure | $ 0 | $ 0 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Operating Lease, Right-of-Use Asset | $ 62,021 | $ 62,021 | $ 63,948 | ||
Finance Lease, Right-of-Use Asset | 260 | 260 | 318 | ||
Operating Lease Liability | 66,765 | 66,765 | 68,309 | ||
Operating Lease, Liability, Current | 11,690 | 11,690 | 11,712 | ||
Operating Lease, Liability, Noncurrent | 55,075 | 55,075 | 56,597 | ||
Finance Lease, Liability | 266 | 266 | 323 | ||
Finance Lease, Liability, Current | 117 | 117 | 115 | ||
Finance Lease, Liability, Noncurrent | 149 | 149 | 208 | ||
Accumulated Amortization Operating Lease Right-of-use asset | 18,807 | 18,807 | 13,719 | ||
Accumulated Amortization Finance Lease Right-of-use asset | 96 | 96 | $ 38 | ||
Operating Lease, Cost | 3,766 | $ 4,024 | 7,675 | $ 8,031 | |
Finance Lease, Interest Expense | 30 | 0 | |||
Variable Lease, Cost | $ 809 | $ 780 | 2,189 | 1,659 | |
Operating Lease, Payments | 6,872 | 7,803 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 4,485 | 1,370 | |||
Finance Lease, Interest Payment on Liability | $ 4 | $ 0 | |||
Operating Lease, Weighted Average Remaining Lease Term | 84 months | 84 months | 88 months | ||
Operating Lease, Weighted Average Discount Rate, Percent | 2.66% | 2.66% | 2.76% | ||
Finance Lease, Weighted Average Remaining Lease Term | 27 months | 27 months | 33 months | ||
Finance Lease, Weighted Average Discount Rate, Percent | 2.42% | 2.42% | 2.42% | ||
Minimum [Member] | |||||
Remaining lease terms | 1 year | 1 year | |||
Maximum [Member] | |||||
Remaining lease terms | 13 years | 13 years |
Leases Lease Maturity (Details)
Leases Lease Maturity (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
2021 (remaining period) | $ 6,569,000 | |
2022 | 13,233,000 | |
2023 | 11,772,000 | |
2024 | 9,640,000 | |
2025 | 6,899,000 | |
Thereafter | 25,164,000 | |
Total lease payments | 73,277,000 | |
Less: interest | (6,512,000) | |
Operating Lease Liability | 66,765,000 | $ 68,309,000 |
Operating Lease Liability Option To Extend Amounts | 5,464,000 | |
Commitments [Member] | ||
Operating Leases, Future Minimum Payments Due | $ 0 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | |||
Interest paid | $ 105 | $ 193 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Loan, Unused Borrowing Capacity | $ 5,000 | ||
Unsecured Loan, Maturity Date | Apr. 30, 2021 | ||
Unsecured Loan, Amount Outstanding | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility, Current Borrowing Capacity | 300,000 | ||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 700,000 | ||
Revolving Credit Facility, Expiration Date | Feb. 10, 2025 | ||
Long-term Debt | $ 0 | $ 0 | |
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 1.00% | ||
Prime Rate [Member] | Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | (1.00%) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Tax Rate | 23.10% | 23.20% | 22.70% | 24.00% |
Income Taxes Paid, Net | $ 24,794 | $ 26,262 | ||
Unrecognized Tax Benefits | $ 11,314 | 11,314 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 10,496 | 10,496 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,896 | $ 1,883 | 1,896 | $ 1,883 |
Minimum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | 3,500 | 3,500 | ||
Maximum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | $ 4,500 | $ 4,500 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense for stock-based compensation | $ 5,127 | $ 4,145 | $ 9,752 | $ 6,998 |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense not yet recognized, stock options | 0 | $ 0 | ||
Weighted average remaining contractual term, stock options | 5 years 6 months | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense yet to be recognized | $ 23,610 | $ 23,610 | ||
Compensation expense yet to be recognized, period for recognition | 1 year 6 months 7 days | |||
Granted, number of shares | 73 | |||
2015 EIP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 3,000 | 3,000 | ||
2015 EIP [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 3 years | |||
Termination period after termination of employment | ninety days | |||
Termination period after death | one year | |||
Termination after grant date | ten years | |||
Fair value on grant date less PV of dividends [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 38 | |||
Fair value under Monte Carlo [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 35 |
Stock Based Compensation Stock
Stock Based Compensation Stock Options (Details) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, period start, number of shares | shares | 22 |
Granted, number of shares | shares | 0 |
Forfeited, number of shares | shares | 0 |
Exercised, number of shares | shares | 0 |
Outstanding, period end, number of shares | shares | 22 |
Outstanding, period start, weighted average exercise price | $ / shares | $ 87.27 |
Granted, weighted average exercise price | $ / shares | 0 |
Forfeited, weighted average exercise price | $ / shares | 0 |
Exercised, weighted average exercise price | $ / shares | 0 |
Outstanding, period end, weighted average exercise price | $ / shares | $ 87.27 |
Outstanding, period end, intrinsic value | $ | $ 1,620 |
Vested and expected to vest, period end, number of shares | shares | 22 |
Vested and expected to vest, period end, weighted average exercise price | $ / shares | $ 87.27 |
Vested and expected to vest, period end, intrinsic value | $ | $ 1,620 |
Exercisable, period end, number of shares | shares | 22 |
Exercisable, period end, weighted average exercise price | $ / shares | $ 87.27 |
Exercisable, period end, intrinsic value | $ | $ 1,620 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($)$ / 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 | 307 |
Granted, number of shares | shares | 73 |
Vested, number of shares | shares | (102) |
Forfeited, number of shares | shares | 0 |
Outstanding, period end, number of shares | shares | 278 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 136.41 |
Granted, weighted average grant date fair value | $ / shares | 185.52 |
Vested, weighted average grant date fair value | $ / shares | 104.57 |
Forfeited, weighted average grant date fair value | $ / shares | 0 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 161.09 |
Restricted Stock Units, Aggregate Intrinsic Value, Outstanding | $ | $ 44,979 |
Stock Based Compensation RSU Me
Stock Based Compensation RSU Measurement Date Assumptions (Details) | 6 Months Ended |
Dec. 31, 2020$ / sharesRate | |
Compensation Peer Group [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Volatility | 25.17% |
Risk free interest rate | 0.11% |
Estimated annual dividend | $ / shares | $ 0.0172 |
Beginning total shareholder return | 37.00% |
S&P 500 IT Index [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Volatility | 25.17% |
Risk free interest rate | 0.11% |
Estimated annual dividend | $ / shares | $ 0.0172 |
Beginning total shareholder return | 30.00% |
Earnings Per Share Earnings P_3
Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net Income | $ 71,982 | $ 72,098 | $ 163,198 | $ 161,468 |
Common share information: | ||||
Weighted average shares outstanding for basic earnings per share | 76,202 | 76,879 | 76,354 | 76,926 |
Dilutive effect of stock options and restricted stock | 78 | 56 | 142 | 75 |
Weighted average shares outstanding for diluted earnings per share | 76,280 | 76,935 | 76,496 | 77,001 |
Basic earnings per share | $ 0.94 | $ 0.94 | $ 2.14 | $ 2.10 |
Diluted earnings per share | $ 0.94 | $ 0.94 | $ 2.13 | $ 2.10 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21 | 50 | 21 | 37 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 685,973 | $ 685,973 | $ 686,334 | |||
Geezeo [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Jul. 1, 2019 | |||||
Payments to Acquire Businesses, Gross | $ 37,776 | |||||
Current assets | 8,925 | |||||
Long-term assets | 397 | |||||
Identifiable intangible assets | 19,114 | |||||
Deferred income tax liability | (2,593) | |||||
Total other liabilities assumed | (7,457) | |||||
Total identifiable net assets | 18,386 | |||||
Net assets acquired | 37,776 | |||||
Acquisition goodwill expected to be tax deductible | 0 | |||||
Cash Acquired from Acquisition | 7,400 | |||||
Acquired Receivable, Fair Value | 1,373 | |||||
Acquired Receivables, Estimated Uncollectible | 0 | |||||
Costs incurred related to acquisition | 30 | |||||
Revenue of Acquiree since Acquisition Date, Actual | 3,273 | $ 2,040 | 6,486 | $ 4,432 | ||
Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 1,156 | $ 140 | $ 2,222 | $ 178 | ||
Business Combination, Acquired Receivables, Gross Contractual Amount | 1,373 | |||||
Customer Relationships [Member] | Geezeo [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable Intangible Assets Acquired | $ 10,522 | |||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | |||||
Computer Software, Intangible Asset [Member] | Geezeo [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable Intangible Assets Acquired | $ 5,791 | |||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | |||||
Other Intangible Assets [Member] | Geezeo [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable Intangible Assets Acquired | $ 2,801 | |||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | |||||
Complementary [Member] | Geezeo [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 19,390 |
Reportable Segment Informatio_3
Reportable Segment Information Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2020segment | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of Reportable Segments | segment | 4 | ||
Core [Member] | |||
Segment Reporting [Abstract] | |||
Reclassification of Revenue Between Reportable Segments | $ (4,845) | $ (9,475) | |
Reclassification of Cost Between Reportable Segments | (2,866) | (5,550) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Reclassification of Revenue Between Reportable Segments | (4,845) | (9,475) | |
Reclassification of Cost Between Reportable Segments | (2,866) | (5,550) | |
Payments [Member] | |||
Segment Reporting [Abstract] | |||
Reclassification of Cost Between Reportable Segments | 131 | 131 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Reclassification of Cost Between Reportable Segments | 131 | 131 | |
Complementary [Member] | |||
Segment Reporting [Abstract] | |||
Reclassification of Revenue Between Reportable Segments | 4,845 | 9,475 | |
Reclassification of Cost Between Reportable Segments | 2,866 | 5,550 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Reclassification of Revenue Between Reportable Segments | 4,845 | 9,475 | |
Reclassification of Cost Between Reportable Segments | 2,866 | 5,550 | |
Corporate and Other [Member] | |||
Segment Reporting [Abstract] | |||
Reclassification of Cost Between Reportable Segments | (131) | (131) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Reclassification of Cost Between Reportable Segments | $ (131) | $ (131) |
Reportable Segment Informatio_4
Reportable Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 422,361 | $ 419,119 | $ 874,161 | $ 857,124 |
Cost of Revenue | 257,782 | 249,267 | 520,711 | 495,058 |
Research and Development | 26,780 | 27,187 | 52,837 | 51,778 |
Selling, General and Administrative | 44,167 | 48,961 | 89,393 | 98,396 |
Total Expenses | 328,729 | 325,415 | 662,941 | 645,232 |
OPERATING INCOME | 93,632 | 93,704 | 211,220 | 211,892 |
INTEREST INCOME (EXPENSE) | (65) | 190 | (115) | 541 |
INCOME BEFORE INCOME TAXES | 93,567 | 93,894 | 211,105 | 212,433 |
Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 134,948 | 133,523 | 288,103 | 284,790 |
Cost of Revenue | 58,519 | 58,377 | 122,410 | 118,999 |
SEGMENT INCOME | 76,429 | 75,146 | 165,693 | 165,791 |
Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 155,182 | 152,045 | 311,915 | 301,791 |
Cost of Revenue | 86,455 | 79,266 | 172,783 | 155,890 |
SEGMENT INCOME | 68,727 | 72,779 | 139,132 | 145,901 |
Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 121,408 | 118,329 | 251,762 | 240,154 |
Cost of Revenue | 52,407 | 50,885 | 104,431 | 100,242 |
SEGMENT INCOME | 69,001 | 67,444 | 147,331 | 139,912 |
Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 10,823 | 15,222 | 22,381 | 30,389 |
Cost of Revenue | 60,401 | 60,739 | 121,087 | 119,927 |
SEGMENT INCOME | (49,578) | (45,517) | (98,706) | (89,538) |
Services & Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 250,873 | 255,204 | 531,870 | 534,012 |
Services & Support [Member] | Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 126,758 | 125,937 | 271,344 | 269,398 |
Services & Support [Member] | Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 14,807 | 14,829 | 31,111 | 32,137 |
Services & Support [Member] | Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 98,829 | 99,323 | 207,378 | 202,404 |
Services & Support [Member] | Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 10,479 | 15,115 | 22,037 | 30,073 |
Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 171,488 | 163,915 | 342,291 | 323,112 |
Processing [Member] | Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 8,190 | 7,586 | 16,759 | 15,392 |
Processing [Member] | Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 140,375 | 137,216 | 280,804 | 269,654 |
Processing [Member] | Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 22,579 | 19,006 | 44,384 | 37,750 |
Processing [Member] | Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 344 | $ 107 | $ 344 | $ 316 |