Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2023 | Jan. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-30 | |
Entity Central Index Key | 0000779152 | |
Entity File Number | 0-14112 | |
Entity Registrant Name | JACK HENRY & ASSOCIATES, INC. | |
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 ($0.01 par value) | |
Trading Symbol | JKHY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 72,867,678 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 26,709 | $ 12,243 |
Receivables, net | 270,551 | 361,252 |
Income tax receivable | 0 | 7,523 |
Prepaid expenses and other | 179,304 | 169,178 |
Deferred costs | 77,703 | 77,766 |
Total current assets | 554,267 | 627,962 |
PROPERTY AND EQUIPMENT, net | 204,846 | 205,664 |
OTHER ASSETS: | ||
Non-current deferred costs | 174,821 | 161,465 |
Computer software, net of amortization | 581,756 | 565,714 |
Other non-current assets | 353,248 | 322,698 |
Other intangible assets, net of amortization | 19,099 | 19,998 |
Goodwill | 804,797 | 804,797 |
Total other assets | 1,994,863 | 1,940,200 |
Total assets | 2,753,976 | 2,773,826 |
CURRENT LIABILITIES: | ||
Accounts payable | 18,729 | 19,156 |
Accrued expenses | 174,084 | 172,629 |
Accrued income taxes | 14,417 | 0 |
Deferred revenues | 196,794 | 331,974 |
Total current liabilities | 404,024 | 523,759 |
LONG TERM LIABILITIES: | ||
Non-current deferred revenues | 72,406 | 67,755 |
Deferred income tax liability | 227,899 | 244,431 |
Debt, net of current maturities | 255,000 | 275,000 |
Other long-term liabilities | 70,260 | 54,371 |
Total long term liabilities | 625,565 | 641,557 |
Total liabilities | $ 1,029,589 | $ 1,165,316 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock - $1 par value; 500,000 shares authorized, none issued | $ 0 | $ 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, issued shares | 104,181,060 | 104,088,784 |
Common stock - $0.01 par value; 250,000,000 shares authorized; 104,181,060 shares issued at December 31, 2023; 104,088,784 shares issued at June 30, 2023 | $ 1,042 | $ 1,041 |
Additional paid-in capital | 601,790 | 583,836 |
Retained earnings | $ 2,973,673 | $ 2,855,751 |
Treasury Stock, Common, Shares | 31,323,119 | 31,194,351 |
Less treasury stock at cost; 31,323,119 shares at December 31, 2023; 31,194,351 shares at June 30, 2023 | $ (1,852,118) | $ (1,832,118) |
Total stockholders' equity | 1,724,387 | 1,608,510 |
Total liabilities and equity | 2,753,976 | 2,773,826 |
Customer Relationships [Member] | ||
OTHER ASSETS: | ||
Customer relationships, net of amortization | $ 61,142 | $ 65,528 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 545,701 | $ 505,314 | $ 1,117,069 | $ 1,034,516 |
EXPENSES | ||||
Cost of Revenue | 320,979 | 304,589 | 643,981 | 602,849 |
Research and Development | 35,478 | 36,561 | 72,370 | 69,554 |
Selling, General, and Administrative | 70,277 | 56,788 | 149,051 | 114,013 |
Total Expenses | 426,734 | 397,938 | 865,402 | 786,416 |
OPERATING INCOME | 118,967 | 107,376 | 251,667 | 248,100 |
INTEREST INCOME (EXPENSE) | ||||
Interest Income | 5,121 | 1,240 | 9,866 | 1,392 |
Interest Expense | (3,865) | (3,406) | (8,062) | (4,982) |
Total Interest Income (Expense) | 1,256 | (2,166) | 1,804 | (3,590) |
INCOME BEFORE INCOME TAXES | 120,223 | 105,210 | 253,471 | 244,510 |
PROVISION FOR INCOME TAXES | 28,258 | 24,435 | 59,827 | 57,186 |
NET INCOME | $ 91,965 | $ 80,775 | $ 193,644 | $ 187,324 |
Earnings Per Share | ||||
Basic earnings per share | $ 1.26 | $ 1.11 | $ 2.66 | $ 2.57 |
Basic weighted average shares outstanding | 72,838 | 72,962 | 72,854 | 72,929 |
Diluted earnings per share | $ 1.26 | $ 1.10 | $ 2.65 | $ 2.56 |
Diluted weighted average shares outstanding | 72,984 | 73,144 | 72,999 | 73,141 |
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, Common [Member] |
Balance, beginning of period (value) at Jun. 30, 2022 | $ 1,039 | $ 551,360 | $ 2,636,342 | $ (1,807,118) | ||
Shares, beginning of period at Jun. 30, 2022 | 103,921,724 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 70,084 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 35,200 | |||||
Shares issued for equity-based payment arrangements (value) | $ 0 | |||||
Shares issued for Employee Stock Purchase Plan (value) | 1 | 6,686 | ||||
Tax withholding related to share-based compensation | (6,731) | |||||
Stock-based compensation expense | 13,541 | |||||
Net Income | $ 187,324 | 187,324 | ||||
Dividends | (71,454) | |||||
Purchase of treasury shares | 0 | |||||
Balance, end of period (value) at Dec. 31, 2022 | $ 1,510,990 | $ 1,040 | 564,856 | 2,752,212 | (1,807,118) | |
Shares, end of period at Dec. 31, 2022 | 104,027,008 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.98 | |||||
Balance, beginning of period (value) at Sep. 30, 2022 | $ 1,040 | 560,034 | 2,707,182 | (1,807,118) | ||
Shares, beginning of period at Sep. 30, 2022 | 103,953,128 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 57,943 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 15,937 | |||||
Shares issued for equity-based payment arrangements (value) | $ 0 | |||||
Shares issued for Employee Stock Purchase Plan (value) | 0 | 2,884 | ||||
Tax withholding related to share-based compensation | (5,174) | |||||
Stock-based compensation expense | 7,112 | |||||
Net Income | $ 80,775 | 80,775 | ||||
Dividends | (35,745) | |||||
Purchase of treasury shares | 0 | |||||
Balance, end of period (value) at Dec. 31, 2022 | $ 1,510,990 | $ 1,040 | 564,856 | 2,752,212 | (1,807,118) | |
Shares, end of period at Dec. 31, 2022 | 104,027,008 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.49 | |||||
Preferred Shares | 0 | |||||
Balance, beginning of period (value) at Jun. 30, 2023 | $ 1,608,510 | $ 1,041 | 583,836 | 2,855,751 | (1,832,118) | |
Shares, beginning of period at Jun. 30, 2023 | 104,088,784 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 47,660 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 44,616 | |||||
Shares issued for equity-based payment arrangements (value) | $ 1 | |||||
Shares issued for Employee Stock Purchase Plan (value) | 0 | 6,035 | ||||
Tax withholding related to share-based compensation | (3,561) | |||||
Stock-based compensation expense | 15,480 | |||||
Net Income | 193,644 | 193,644 | ||||
Dividends | (75,722) | |||||
Purchase of treasury shares | (20,000) | |||||
Balance, end of period (value) at Dec. 31, 2023 | $ 1,724,387 | $ 1,042 | 601,790 | 2,973,673 | (1,852,118) | |
Shares, end of period at Dec. 31, 2023 | 104,181,060 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 1.04 | |||||
Balance, beginning of period (value) at Sep. 30, 2023 | $ 1,041 | 591,458 | 2,919,567 | (1,852,118) | ||
Shares, beginning of period at Sep. 30, 2023 | 104,144,549 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (shares) | 16,603 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 19,908 | |||||
Shares issued for equity-based payment arrangements (value) | $ 1 | |||||
Shares issued for Employee Stock Purchase Plan (value) | 0 | 2,616 | ||||
Tax withholding related to share-based compensation | (617) | |||||
Stock-based compensation expense | 8,333 | |||||
Net Income | $ 91,965 | 91,965 | ||||
Dividends | (37,859) | |||||
Purchase of treasury shares | 0 | |||||
Balance, end of period (value) at Dec. 31, 2023 | $ 1,724,387 | $ 1,042 | $ 601,790 | $ 2,973,673 | $ (1,852,118) | |
Shares, end of period at Dec. 31, 2023 | 104,181,060 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.52 | |||||
Preferred Shares | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 193,644 | $ 187,324 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 23,765 | 24,766 |
Amortization | 75,366 | 68,946 |
Change in deferred income taxes | (16,532) | (27,611) |
Expense for stock-based compensation | 15,480 | 14,544 |
(Gain)/loss on disposal of assets | 213 | (7,240) |
Changes in operating assets and liabilities: | ||
Change in receivables | 90,702 | 102,672 |
Change in prepaid expenses, deferred costs and other | (52,969) | (39,042) |
Change in accounts payable | 277 | (7,696) |
Change in accrued expenses | 15,463 | (47,544) |
Change in income taxes | 23,792 | 47,025 |
Change in deferred revenues | (130,529) | (125,433) |
Net cash from operating activities | 238,672 | 190,711 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payment for acquisitions, net of cash acquired | 0 | (229,628) |
Capital expenditures | (24,458) | (17,376) |
Proceeds from dispositions | 878 | 27,885 |
Purchased software | (2,971) | (1,027) |
Computer software developed | (83,408) | (81,046) |
Purchase of investments | (1,000) | 0 |
Net cash from investing activities | (110,959) | (301,192) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on credit facilities | 220,000 | 365,000 |
Repayments on credit facilities and financing leases | (240,000) | (205,042) |
Purchase of treasury stock | (20,000) | 0 |
Dividends paid | (75,722) | (71,454) |
Tax withholding payments related to share-based compensation | (3,561) | (6,731) |
Proceeds from sale of common stock | 6,036 | 5,684 |
Net cash from financing activities | (113,247) | 87,457 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 14,466 | (23,024) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 12,243 | 48,787 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 26,709 | $ 25,763 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
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,” or the “Company”) is a well-rounded financial technology company. Jack Henry was founded in 1976 as a provider of core information processing solutions for banks. Today, the Company’s extensive array of products and services includes processing transactions, automating business processes, and managing information for approximately 7,500 financial institutions and diverse corporate entities. Consolidation The condensed consolidated financial statements include the accounts of Jack Henry and all of its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated. Comprehensive Income Comprehensive income for the three and six months ended December 31, 2023 and 2022, equals the Company’s net income. Allowance for Credit Losses The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. The following table summarizes allowance for credit losses activity for the three and six months ended December 31, 2023: Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Allowance for credit losses - beginning balance $ 8,204 $ 8,030 $ 7,955 $ 7,616 Current provision for expected credit losses 480 480 960 960 Write-offs charged against allowance (552) (325) (783) (390) Recoveries of amounts previously written off — (1) — (2) Allowance for credit losses - ending balance $ 8,132 $ 8,184 $ 8,132 $ 8,184 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, 2023, totaled $464,879 and at June 30, 2023, totaled $466,711. Intangible Assets Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally 3 to 20 years. Accumulated amortization of intangible assets totaled $1,201,636 and $1,149,913 at December 31, 2023, and June 30, 2023, respectively. Purchase of Investment At December 31, 2023, and June 30, 2023, the Company had an investment in the preferred stock of Autobooks, Inc. (“Autobooks”) of $18,250, which represented a non-controlling share of the voting equity as of that date. The total investment was recorded at cost and is included within other non-current assets on the Company's balance sheet. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing a similar or identical investment. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair value will not be estimated unless there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. 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, 2023, there were 31,323 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,667 additional shares. The total cost of treasury shares at December 31, 2023, was $1,852,118. During the first six months of fiscal 2024, the Company repurchased 129 shares. At June 30, 2023, there were 31,194 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,796 additional shares. The total cost of treasury shares at June 30, 2023, was $1,832,118 and the Company repurchased no shares during the first six months of fiscal 2023. Income Taxes Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of unrecognized benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. Interim Financial Statements The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended June 30, 2023. In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly in all material respects the financial position of the Company as of December 31, 2023, the results of its operations for the three and six months ended December 31, 2023 and 2022, changes in stockholders' equity for the three and six months ended December 31, 2023 and 2022, and its cash flows for the six months ended December 31, 2023 and 2022. The condensed consolidated balance sheet at June 30, 2023, was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements. The results of operations for the three and six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the entire fiscal year. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies 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, 2023. For the three and six months ended December 31, 2023, there have been no new or material changes to the significant accounting policies discussed in the Company’s Form 10-K for the fiscal year ended June 30, 2023, that are of significance, or potential significance, to the Company. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Guidance [Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Guidance In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company adopted the ASU effective July 1, 2023, and will apply it prospectively to business combinations occurring after that date. Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves the disclosures about a public entity's reportable segments through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The ASU requires additional disclosure related to rate reconciliation, income taxes paid, and other disclosures to improve the effectiveness of income tax disclosures. The ASU is effective for annual periods beginning after December 15, 2024, and applied on a prospective basis. Early adoption and retrospective application is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. |
Revenue and Deferred Costs Reve
Revenue and Deferred Costs Revenue and Deferred Costs (Notes) | 6 Months Ended |
Dec. 31, 2023 | |
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 and hosting, transaction processing, software licensing and related services, professional services, and hardware sales. Disaggregation of Revenue The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue. Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Private and Public Cloud $ 168,733 $ 153,130 $ 332,222 $ 302,129 Product Delivery and Services 63,013 58,594 123,852 116,117 On-Premise Support 80,246 78,976 198,123 192,603 Services and Support 311,992 290,700 654,197 610,849 Processing 233,709 214,614 462,872 423,667 Total Revenue $ 545,701 $ 505,314 $ 1,117,069 $ 1,034,516 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. December 31, June 30, Receivables, net $ 270,551 $ 361,252 Contract Assets - Current 31,702 26,711 Contract Assets - Non-current 82,006 81,561 Contract Liabilities (Deferred Revenue) - Current 196,794 331,974 Contract Liabilities (Deferred Revenue) - Non-current 72,406 67,755 Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, except where invoicing is contingent upon the completion of other performance obligations or payment terms differ from the provisioning of services. The current portion of contract assets is reported within prepaid expenses and other in the condensed consolidated balance sheet, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue) primarily relate to consideration received from customers in advance of delivery of the related goods and services to the customer. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company analyzes contract language to identify if a significant financing component does exist and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction. During the three months ended December 31, 2023, and 2022, the Company recognized revenue of $85,458 and $83,145, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. For the six months ended December 31, 2023, and 2022, the Company recognized revenue of $167,671 and $159,393, 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, 2023, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $6,446,023. The Company expects to recognize approximately 24% over the next 12 months, 19% in 13-24 months, and the balance thereafter. Contract Costs The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and customer conversion or implementation-related costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated. Capitalized costs totaled $460,686 and $442,012, at December 31, 2023, and June 30, 2023, respectively. For the three months ended December 31, 2023, and 2022, amortization of deferred contract costs totaled $41,552 and $34,861, respectively. During the six months ended December 31, 2023, and 2022, amortization of deferred contract costs totaled $92,088 and $76,841, 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, 2023 | |
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, 2023 Financial Assets: Certificates of Deposit $ — $ 3,276 $ — $ 3,276 Financial Liabilities: Credit facilities $ — $ 255,000 $ — $ 255,000 June 30, 2023 Financial Assets: Certificates of Deposit $ — $ 2,234 $ — $ 2,234 Financial Liabilities: Credit facilities $ — $ 275,000 $ — $ 275,000 |
Leases Leases (Notes)
Leases Leases (Notes) | 6 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company determines if an arrangement is a lease, or contains a lease, at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company leases certain office space, data centers, and equipment with remaining terms of 1 month to 10 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, 2023, and June 30, 2023, the Company had operating lease assets of $58,480 and $43,662, respectively. At December 31, 2023, total operating lease liabilities of $63,797 were comprised of current operating lease liabilities of $9,268 and noncurrent operating lease liabilities of $54,529. At June 30, 2023, total operating lease liabilities of $50,269 were comprised of current operating lease liabilities of $9,776 and noncurrent operating lease liabilities of $40,493. Operating lease assets are included within other non-current assets accrued expenses other long-term liabilities Operating lease costs for the three months ended December 31, 2023, and 2022, were $2,229 and $3,029, respectively. Total operating lease costs for the respective quarters included variable lease costs of $1,709 and $957, respectively. Operating lease costs for the six months ended December 31, 2023, and 2022, were $4,698 and $6,088, respectively. Total operating lease costs for the respective fiscal year-to-date periods included variable lease costs of $2,253 and $1,881, respectively. Operating lease expense is included within cost of services, research and development, and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statements of income. For the six months ended December 31, 2023, and 2022, the Company had operating cash flows for payments on operating leases of $4,422 and $6,202, and ROU assets obtained in exchange for operating lease liabilities of $18,935 and $2,282, respectively. As of December 31, 2023, and June 30, 2023, the weighted-average remaining lease term for the Company's operating leases was 82 months and 78 months, and the weighted-average discount rate was 2.68% and 2.14%, respectively. 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, 2023: Due Dates (fiscal year) Future Minimum Rental Payments 2024 (remaining period) $ 4,813 2025 10,160 2026 10,747 2027 10,271 2028 9,979 Thereafter 25,001 Total lease payments $ 70,971 Less: interest (7,174) Present value of lease liabilities $ 63,797 Future lease payments include $5,464 related to options to extend lease terms that are reasonably certain of being exercised. At December 31, 2023, there were no legally binding lease payments for leases signed but not yet commenced. |
Lessor, Operating Leases | On September 30, 2023, the Company entered into an agreement with a third party to sublease a portion of its Elizabethtown, Kentucky facility. The commencement date of the sublease was October 1, 2023, and has a term of 57 months. Sublease income for the three and six months ended December 31, 2023 was $132 and is included within revenue on the Company's condensed consolidated statements of income. There have been no indications of impairment related to the underlying right-of-use asset. Minimum Sublease Payments At December 31, 2023, the future total minimum sublease payments to be received were as follows: Due Dates (fiscal year) Future Minimum Sublease Receipts 2024 (remaining period) $ 395 2025 807 2026 831 2027 856 2028 882 Total sublease receipts $ 3,771 |
Debt (Text Block)
Debt (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosures [Text Block] | DEBT Credit facilities On August 31, 2022, the Company entered into a five-year senior, unsecured amended and restated credit agreement that replaced a prior credit facility that was entered into on February 10, 2020. The credit agreement allows for borrowings of up to $600,000, which may be increased to $1,000,000 by the Company at any time until maturity. The credit agreement bears interest at a variable rate equal to (a) a rate based on an adjusted Secured Overnight Financing Rate (“SOFR”) term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of December 31, 2023, the Company was in compliance with all such covenants. The amended and restated credit facility terminates August 31, 2027. There was $75,000 and $95,000 outstanding under the amended and restated credit facility at December 31, 2023 and June 30, 2023, respectively. Term loan facility On May 16, 2023, the Company entered into a term loan credit agreement with a syndicate of financial institutions, with an original principal balance of $180,000. Borrowings under the term loan facility bear interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such day plus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 0.75%), plus an applicable percentage in each case determined by the Company's leverage ratio. The term loan credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the term loan credit agreement. As of December 31, 2023, the Company was in compliance with all such covenants. The term loan credit agreement has a maturity date of May 16, 2025. There was $180,000 outstanding under the term loan at December 31, 2023 and June 30, 2023. Other lines of credit The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1.0%. The credit line expires on April 30, 2025. There was no balance outstanding at December 31, 2023, or June 30, 2023. Interest The Company paid interest of $6,802 and $2,724 during the six months ended December 31, 2023, and 2022, respectively. |
Income Taxes (Text Block)
Income Taxes (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The effective tax rate increased for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, with an effective tax rate of 23.5% of income before income taxes, compared to 23.2% in the prior fiscal year quarter. For the six months ended December 31, 2023, the effective tax rate increased compared to the six months ended December 31, 2022, with an effective tax rate of 23.6% of income before taxes, compared to 23.4% for the same period last fiscal year. The increase in the effective tax rate for the three and six months ended December 31, 2023, 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 $52,018 and $37,213 in the six months ended December 31, 2023, and 2022, respectively. The increase in paid income taxes for the six months ended December 31, 2023 over the six months ended December 31, 2022 was primarily the result of the timing of payments, with a greater portion of the anticipated equivalent annual amounts being paid in the current fiscal year-to-date period. At December 31, 2023, the Company had $13,414 of gross unrecognized tax benefits before interest and penalties, $11,702 of which, if recognized, would affect our effective tax rate. The Company had accrued interest and penalties of $2,317 and $1,546 related to uncertain tax positions at December 31, 2023, and 2022, respectively. The U.S. federal income tax returns for fiscal 2020 and all subsequent years remain subject to examination as of December 31, 2023, under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of December 31, 2023, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates potential changes due to lapsing of statutes of limitations, and examination closures could reduce the unrecognized tax benefits balance by $1,500 to $4,500 within twelve months of December 31, 2023. |
Stock Based Compensation (Text
Stock Based Compensation (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION Our operating income for the three months ended December 31, 2023, and 2022, included $8,333 and $7,545 of stock-based compensation costs, respectively. Our operating income for the six months ended December 31, 2023, and 2022, included $15,480 and $14,544 of stock-based compensation costs, respectively. 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. Stock option awards Under the 2015 EIP, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant. During the six months ended December 31, 2023, there were no options granted, forfeited, or exercised. At December 31, 2023, 12 options were outstanding at a weighted average exercise price of $87.27 with an aggregate intrinsic value of $890. At December 31, 2023, there was no compensation cost yet to be recognized related to outstanding options. All of the options are currently exercisable, with a weighted average remaining contractual term (remaining period of exercisability) of 2.5 years as of December 31, 2023. Restricted stock unit and performance unit awards The Company issues unit awards under the 2015 EIP. Restricted stock unit awards (which are unit awards that have service requirements only and are not tied to performance measures) generally vest over a period of 1 to 3 years. Performance unit awards are awards that have performance measures in addition to service requirements. The following table summarizes non-vested restricted stock unit awards and performance awards as of December 31, 2023: Unit awards Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding July 1, 2023 303 $ 190.08 Granted 1 153 178.63 Vested (69) 183.35 Forfeited 2 (33) 197.38 Outstanding December 31, 2023 354 $ 185.77 $ 57,773 1 Granted includes restricted stock unit awards and performance unit awards at 100% achievement. 2 Forfeited includes restricted stock unit awards and performance unit awards forfeited for service requirements not met and performance unit awards not settled due to underachievement of performance measures. Of the 153 unit awards granted in fiscal 2024, 95 were restricted stock unit awards and 58 were performance unit awards. The restricted stock unit awards were valued at the weighted average fair value of the non-vested units based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. 23 of the performance unit awards granted in fiscal 2024 were valued at grant by estimating 100% payout at release and using the fair market value of the Company equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period. The payout at release of approximately half of these performance unit awards will be determined based on the Company's compound annual growth rate for revenue (excluding adjustments) for the three-year vesting period compared against goal thresholds as defined in the award agreement. The performance payout at release of the other half of these performance unit awards will be determined based on the expansion of the Company's non-GAAP operating margin over the three-year vesting period compared against goal thresholds as defined in the award agreement. 35 of the performance unit awards have market conditions and were valued at grant using a Monte Carlo pricing model as of the measurement date customized to the specific provisions of the Company’s plan design. Per the Company's award vesting and settlement provisions, the performance unit awards that utilize a Monte Carlo pricing model were valued at grant on the basis of Total Shareholder Return (“TSR”) in comparison to the compensation peer group made up of participants approved by the Compensation Committee of the Company's Board of Directors for fiscal year 2024. The Monte Carlo inputs used in the model to estimate fair value at the measurement date and resulting values for these performance unit awards are as follows: Monte Carlo award inputs: Fiscal 2024 Compensation Peer Group: Volatility 25.6 % Risk free interest rate 4.48 % Annual dividend based on most recent quarterly dividend $2.08 Dividend yield 1.23 % Beginning average percentile rank for TSR 74.0 % At December 31, 2023, there was $31,275 of compensation expense that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted average period of 1.35 years. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2023 2022 Net Income $ 91,965 $ 80,775 $ 193,644 $ 187,324 Common share information: Weighted average shares outstanding for basic earnings per share 72,838 72,962 72,854 72,929 Dilutive effect of stock options, restricted stock units, and performance units 146 182 145 212 Weighted average shares outstanding for diluted earnings per share 72,984 73,144 72,999 73,141 Basic earnings per share $ 1.26 $ 1.11 $ 2.66 $ 2.57 Diluted earnings per share $ 1.26 $ 1.10 $ 2.65 $ 2.56 Per share information is based on the weighted average number of common shares outstanding for the three and six months ended December 31, 2023, and 2022. Stock options, restricted stock units, and performance units have been included in the calculation of diluted earnings per share to the extent they are dilutive. There were 24 and 22 anti-dilutive stock options, restricted stock units, or performance units excluded for the three and six months ended December 31, 2023, respectively, and 31 and 25 were excluded for the three and six months ended December 31, 2022, respectively. |
Business Acquisitions (Text Blo
Business Acquisitions (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Business Acquisition Disclosure [Text Block] | BUSINESS ACQUISITION Payrailz On August 31, 2022, the Company acquired all of the equity interest in Payrailz, LLC (“Payrailz”). The final purchase price, following customary post-closing adjustments to the extent actual closing date working capital, cash, debt, and unpaid seller transaction expenses exceeded or were less than the amounts estimated at closing, was $230,205. Pursuant to the merger agreement for the transaction, $48,500 of the purchase price was placed in an escrow account at the closing, consisting of $2,500 for any final purchase price adjustments owed by the sellers, which amount was released to the sellers on December 15, 2022, in connection with post-closing purchase price adjustments, and $46,000 for indemnification matters under the merger agreement, which amount was released to the sellers September 20, 2023. The primary reason for the acquisition was to expand the Company's digital financial management solutions and the purchase was funded by our revolving line of credit (Note 6) and cash generated from operations. Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions and experiences that enable money to be moved in the moment of need. Management has completed a purchase price allocation and assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired, and liabilities assumed, based on their fair values as of August 31, 2022, and taking into account the post-closing purchase price adjustment described above, are set forth below: Current assets $ 1,851 Identifiable intangible assets 119,868 Deferred revenue (8,104) Total other liabilities assumed (749) Total identifiable net assets 112,866 Goodwill 117,339 Net assets acquired $ 230,205 The goodwill of $117,339 arising from this acquisition consists largely of the growth potential, synergies, and economies of scale expected from combining the operations of the Company with those of Payrailz, together with the value of Payrailz's assembled workforce. The goodwill from this acquisition has been allocated to our Payments segment and $117,339 is expected to be deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $6,109, computer software of $112,505, and other intangible assets of $1,254. The amortization period for acquired customer relationships, computer software, and other intangible assets is over a term of 15 years, 10 years, and 15 years, respectively. Current assets were inclusive of cash acquired of $577. The fair value of current assets acquired included accounts receivable of $978, none of which were expected to be uncollectible. |
Reportable Segment Information
Reportable Segment Information (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information Disclosure [Text Block] | REPORTABLE SEGMENT INFORMATION The Company is a leading provider of technology solutions and payment processing services primarily to community and regional financial institutions. The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, Automated Clearing House (“ACH”) origination and remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including call center support, network security management, consulting, and monitoring that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributed to any of the other three segments, as well as operating expenses not directly attributable to the other three segments. The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment. Immaterial adjustments have been made between segments to reclassify revenue and cost of revenue that was recognized for the three and six months ended December 31, 2022. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed for the three and six months ended December 31, 2022, from Core to Corporate and Other was $1,851 and $3,661, respectively, from Payments to Corporate and Other was $10 and $16, respectively, and from Complementary to Corporate and Other was $174 and $108, respectively. Cost of revenue reclassed for the three and six months ended December 31, 2022, from Core to Corporate and Other was $1,658 and $3,294, respectively, from Payments to Corporate and Other was $658 and $1,261, respectively, and from Complementary to Corporate and Other was $326 and $659, respectively. Three Months Ended December 31, 2023 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 155,429 $ 21,060 $ 113,779 $ 21,724 $ 311,992 Processing 10,172 182,779 38,687 2,071 233,709 Total Revenue 165,601 203,839 152,466 23,795 545,701 Cost of Revenue 69,370 111,623 64,023 75,963 320,979 Research and Development 35,478 Selling, General, and Administrative 70,277 Total Expenses 426,734 SEGMENT INCOME $ 96,231 $ 92,216 $ 88,443 $ (52,168) OPERATING INCOME 118,967 INTEREST INCOME (EXPENSE) 1,256 INCOME BEFORE INCOME TAXES $ 120,223 Three Months Ended December 31, 2022 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 143,799 $ 19,330 $ 110,206 $ 17,365 $ 290,700 Processing 9,740 172,147 31,915 812 214,614 Total Revenue 153,539 191,477 142,121 18,177 505,314 Cost of Revenue 66,666 107,413 58,944 71,566 304,589 Research and Development 36,561 Selling, General, and Administrative 56,788 Total Expenses 397,938 SEGMENT INCOME $ 86,873 $ 84,064 $ 83,177 $ (53,389) OPERATING INCOME 107,376 INTEREST INCOME (EXPENSE) (2,166) INCOME BEFORE INCOME TAXES $ 105,210 Six Months Ended December 31, 2023 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 331,173 $ 40,962 $ 238,050 $ 44,012 $ 654,197 Processing 20,868 362,233 75,783 3,988 462,872 Total Revenue 352,041 403,195 313,833 48,000 1,117,069 Cost of Revenue 145,296 220,449 126,298 151,938 643,981 Research and Development 72,370 Selling, General, and Administrative 149,051 Total Expenses 865,402 SEGMENT INCOME $ 206,745 $ 182,746 $ 187,535 $ (103,938) OPERATING INCOME 251,667 INTEREST INCOME (EXPENSE) 1,804 INCOME BEFORE INCOME TAXES $ 253,471 Six Months Ended December 31, 2022 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 307,014 $ 37,982 $ 228,420 $ 37,433 $ 610,849 Processing 19,839 340,028 62,119 1,681 423,667 Total Revenue 326,853 378,010 290,539 39,114 1,034,516 Cost of Revenue 137,270 207,965 117,049 140,565 602,849 Research and Development 69,554 Selling, General, and Administrative 114,013 Total Expenses 786,416 SEGMENT INCOME $ 189,583 $ 170,045 $ 173,490 $ (101,451) OPERATING INCOME 248,100 INTEREST INCOME (EXPENSE) (3,590) INCOME BEFORE INCOME TAXES $ 244,510 The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Executive Officer, who is also the Chief Operating Decision Maker. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Text Block) | 6 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS None. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income | $ 91,965 | $ 80,775 | $ 193,644 | $ 187,324 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Jack Henry and all of its subsidiaries, which are wholly owned, and all intercompany accounts and transactions have been eliminated. |
Comprehensive Income | Comprehensive income for the three and six months ended December 31, 2023 and 2022, equals the Company’s net income. |
Allowance for Credit Losses | The Company monitors trade and other receivable balances and contract assets and estimates the allowance for lifetime expected credit losses. Estimates of expected credit losses are based on historical collection experience and other factors, including those related to current market conditions and events. |
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. |
Intangible Assets | Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally 3 to 20 years. |
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 Taxes | Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expenses are recognized on the full amount of unrecognized benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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, 2023 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease, or contains a lease, at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date. The determination of the incremental borrowing rate requires judgment and is determined by using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company leases certain office space, data centers, and equipment with remaining terms of 1 month to 10 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. |
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, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for Credit Losses | The following table summarizes allowance for credit losses activity for the three and six months ended December 31, 2023: Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Allowance for credit losses - beginning balance $ 8,204 $ 8,030 $ 7,955 $ 7,616 Current provision for expected credit losses 480 480 960 960 Write-offs charged against allowance (552) (325) (783) (390) Recoveries of amounts previously written off — (1) — (2) Allowance for credit losses - ending balance $ 8,132 $ 8,184 $ 8,132 $ 8,184 |
Revenue and Deferred Costs Re_2
Revenue and Deferred Costs Revenue and Deferred Costs (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2023 2022 Private and Public Cloud $ 168,733 $ 153,130 $ 332,222 $ 302,129 Product Delivery and Services 63,013 58,594 123,852 116,117 On-Premise Support 80,246 78,976 198,123 192,603 Services and Support 311,992 290,700 654,197 610,849 Processing 233,709 214,614 462,872 423,667 Total Revenue $ 545,701 $ 505,314 $ 1,117,069 $ 1,034,516 |
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 $ 270,551 $ 361,252 Contract Assets - Current 31,702 26,711 Contract Assets - Non-current 82,006 81,561 Contract Liabilities (Deferred Revenue) - Current 196,794 331,974 Contract Liabilities (Deferred Revenue) - Non-current 72,406 67,755 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023 Financial Assets: Certificates of Deposit $ — $ 3,276 $ — $ 3,276 Financial Liabilities: Credit facilities $ — $ 255,000 $ — $ 255,000 June 30, 2023 Financial Assets: Certificates of Deposit $ — $ 2,234 $ — $ 2,234 Financial Liabilities: Credit facilities $ — $ 275,000 $ — $ 275,000 |
Leases Leases (Tables)
Leases Leases (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023: Due Dates (fiscal year) Future Minimum Rental Payments 2024 (remaining period) $ 4,813 2025 10,160 2026 10,747 2027 10,271 2028 9,979 Thereafter 25,001 Total lease payments $ 70,971 Less: interest (7,174) Present value of lease liabilities $ 63,797 |
Lessor, Operating Lease, Payment to be Received, Maturity | Minimum Sublease Payments At December 31, 2023, the future total minimum sublease payments to be received were as follows: Due Dates (fiscal year) Future Minimum Sublease Receipts 2024 (remaining period) $ 395 2025 807 2026 831 2027 856 2028 882 Total sublease receipts $ 3,771 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes non-vested restricted stock unit awards and performance awards as of December 31, 2023: Unit awards Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding July 1, 2023 303 $ 190.08 Granted 1 153 178.63 Vested (69) 183.35 Forfeited 2 (33) 197.38 Outstanding December 31, 2023 354 $ 185.77 $ 57,773 1 Granted includes restricted stock unit awards and performance unit awards at 100% achievement. 2 Forfeited includes restricted stock unit awards and performance unit awards forfeited for service requirements not met and performance unit awards not settled due to underachievement of performance measures. |
Schedule Of Share Based Payment Award PSU Valuation Assumptions [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: Monte Carlo award inputs: Fiscal 2024 Compensation Peer Group: Volatility 25.6 % Risk free interest rate 4.48 % Annual dividend based on most recent quarterly dividend $2.08 Dividend yield 1.23 % Beginning average percentile rank for TSR 74.0 % |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [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, 2023 2022 2023 2022 Net Income $ 91,965 $ 80,775 $ 193,644 $ 187,324 Common share information: Weighted average shares outstanding for basic earnings per share 72,838 72,962 72,854 72,929 Dilutive effect of stock options, restricted stock units, and performance units 146 182 145 212 Weighted average shares outstanding for diluted earnings per share 72,984 73,144 72,999 73,141 Basic earnings per share $ 1.26 $ 1.11 $ 2.66 $ 2.57 Diluted earnings per share $ 1.26 $ 1.10 $ 2.65 $ 2.56 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Payrailz [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 assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired, and liabilities assumed, based on their fair values as of August 31, 2022, and taking into account the post-closing purchase price adjustment described above, are set forth below: Current assets $ 1,851 Identifiable intangible assets 119,868 Deferred revenue (8,104) Total other liabilities assumed (749) Total identifiable net assets 112,866 Goodwill 117,339 Net assets acquired $ 230,205 |
Reportable Segment Informatio_2
Reportable Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended December 31, 2023 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 155,429 $ 21,060 $ 113,779 $ 21,724 $ 311,992 Processing 10,172 182,779 38,687 2,071 233,709 Total Revenue 165,601 203,839 152,466 23,795 545,701 Cost of Revenue 69,370 111,623 64,023 75,963 320,979 Research and Development 35,478 Selling, General, and Administrative 70,277 Total Expenses 426,734 SEGMENT INCOME $ 96,231 $ 92,216 $ 88,443 $ (52,168) OPERATING INCOME 118,967 INTEREST INCOME (EXPENSE) 1,256 INCOME BEFORE INCOME TAXES $ 120,223 Three Months Ended December 31, 2022 Core Payments Complementary Corporate and Other Total REVENUE Services and Support $ 143,799 $ 19,330 $ 110,206 $ 17,365 $ 290,700 Processing 9,740 172,147 31,915 812 214,614 Total Revenue 153,539 191,477 142,121 18,177 505,314 Cost of Revenue 66,666 107,413 58,944 71,566 304,589 Research and Development 36,561 Selling, General, and Administrative 56,788 Total Expenses 397,938 SEGMENT INCOME $ 86,873 $ 84,064 $ 83,177 $ (53,389) OPERATING INCOME 107,376 INTEREST INCOME (EXPENSE) (2,166) INCOME BEFORE INCOME TAXES $ 105,210 Six Months Ended December 31, 2023 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 331,173 $ 40,962 $ 238,050 $ 44,012 $ 654,197 Processing 20,868 362,233 75,783 3,988 462,872 Total Revenue 352,041 403,195 313,833 48,000 1,117,069 Cost of Revenue 145,296 220,449 126,298 151,938 643,981 Research and Development 72,370 Selling, General, and Administrative 149,051 Total Expenses 865,402 SEGMENT INCOME $ 206,745 $ 182,746 $ 187,535 $ (103,938) OPERATING INCOME 251,667 INTEREST INCOME (EXPENSE) 1,804 INCOME BEFORE INCOME TAXES $ 253,471 Six Months Ended December 31, 2022 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 307,014 $ 37,982 $ 228,420 $ 37,433 $ 610,849 Processing 19,839 340,028 62,119 1,681 423,667 Total Revenue 326,853 378,010 290,539 39,114 1,034,516 Cost of Revenue 137,270 207,965 117,049 140,565 602,849 Research and Development 69,554 Selling, General, and Administrative 114,013 Total Expenses 786,416 SEGMENT INCOME $ 189,583 $ 170,045 $ 173,490 $ (101,451) OPERATING INCOME 248,100 INTEREST INCOME (EXPENSE) (3,590) INCOME BEFORE INCOME TAXES $ 244,510 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) | Dec. 31, 2023 client |
Accounting Policies [Abstract] | |
Entity number of customers | 7,500 |
Nature of Operations and Summ_5
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses- beginning balance | $ 8,204 | $ 8,030 | $ 7,955 | $ 7,616 |
Current provision for expected credit losses | 480 | 480 | 960 | 960 |
Write-offs charged against allowance | (552) | (325) | (783) | (390) |
Recoveries of amounts previously written off | 0 | (1) | 0 | (2) |
Allowance for credit losses- ending balance | $ 8,132 | $ 8,184 | $ 8,132 | $ 8,184 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Property, Plant and Equipment [Abstract] | ||
Accumulated Depreciation, Property and Equipment | $ 464,879 | $ 466,711 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 1,201,636 | $ 1,149,913 |
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_8
Nature of Operations and Summary of Significant Accounting Policies Purchase of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Automated Bookkeeping, Inc. [Member] | Preferred Stock [Member] | ||
Investment Owned, at Cost | $ 18,250 | $ 18,250 |
Nature of Operations and Summ_9
Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Class of Stock Disclosures [Abstract] | |||
Treasury Stock, Common, Shares | 31,323,119 | 31,194,351 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 3,667,000 | 3,796,000 | |
Treasury Stock, Value | $ 1,852,118 | $ 1,832,118 | |
Treasury Stock, Shares, Acquired | 129,000 | 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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 545,701 | $ 505,314 | $ 1,117,069 | $ 1,034,516 |
Private and Public Cloud | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 168,733 | 153,130 | 332,222 | 302,129 |
Product Delivery and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 63,013 | 58,594 | 123,852 | 116,117 |
On-Premise Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 80,246 | 78,976 | 198,123 | 192,603 |
Services and Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 311,992 | 290,700 | 654,197 | 610,849 |
Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 233,709 | $ 214,614 | $ 462,872 | $ 423,667 |
Revenue and Deferred Costs Cont
Revenue and Deferred Costs Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, net | $ 270,551 | $ 361,252 |
Contract Assets- Current | 31,702 | 26,711 |
Contract Asset- Non-current | 82,006 | 81,561 |
Contract Liabilities (Deferred Revenue)- Current | 196,794 | 331,974 |
Contract Liabilities (Deferred Revenue)- Non- current | $ 72,406 | $ 67,755 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized from beginning deferred balance | $ 85,458 | $ 83,145 | $ 167,671 | $ 159,393 |
Future revenue related to unsatisfied performance obligations | $ 6,446,023 | $ 6,446,023 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||||
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 | 24% | 24% | ||
Future revenue related to unsatisfied performance obligations, expected timing | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||||
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 | 19% | 19% | ||
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Capitalized Contract Cost | $ 460,686 | $ 460,686 | $ 442,012 | ||
Amortization of deferred contract costs | $ 41,552 | $ 34,861 | $ 92,088 | $ 76,841 |
Fair Value Measures and Discl_4
Fair Value Measures and Disclosures (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | $ 3,276 | $ 2,234 |
Certificates of Deposit | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | 0 | 0 |
Certificates of Deposit | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | 3,276 | 2,234 |
Certificates of Deposit | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of Deposit | 0 | 0 |
Credit facilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facilities | 255,000 | 275,000 |
Credit facilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facilities | 0 | 0 |
Credit facilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facilities | 255,000 | 275,000 |
Credit facilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facilities | $ 0 | $ 0 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Operating Lease, Right-of-Use Asset | $ 58,480 | $ 58,480 | $ 43,662 | ||
Present value of operating lease liabilities | 63,797 | 63,797 | 50,269 | ||
Operating Lease, Liability, Current | 9,268 | 9,268 | 9,776 | ||
Operating Lease, Liability, Noncurrent | $ 54,529 | $ 54,529 | $ 40,493 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets | Other non-current assets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses | Accrued expenses | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | Other long-term liabilities | ||
Accumulated Amortization Operating Lease Right-of-use asset | $ 29,984 | $ 29,984 | $ 34,973 | ||
Operating Lease, Cost | 2,229 | $ 3,029 | 4,698 | $ 6,088 | |
Variable Lease, Cost | $ 1,709 | $ 957 | 2,253 | 1,881 | |
Operating Lease, Payments | 4,422 | 6,202 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 18,935 | $ 2,282 | |||
Operating Lease, Weighted Average Remaining Lease Term | 82 months | 82 months | 78 months | ||
Operating Lease, Weighted Average Discount Rate, Percent | 2.68% | 2.68% | 2.14% | ||
Operating Lease Liability Option To Extend Amounts | $ 5,464 | $ 5,464 | |||
Lessee, lease not yet commenced, future minimum payments due | $ 0 | $ 0 | |||
Elizabethtown, KY Sublease | |||||
Lessor, Operating Lease, Term of Contract | 57 months | 57 months | |||
Sublease Income | $ 132 | $ 132 | |||
Minimum [Member] | |||||
Remaining lease terms | 1 month | 1 month | |||
Maximum [Member] | |||||
Remaining lease terms | 10 years | 10 years |
Leases Lease Maturity (Details)
Leases Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Leases [Abstract] | ||
2024 (remaining period) | $ 4,813 | |
2025 | 10,160 | |
2026 | 10,747 | |
2027 | 10,271 | |
2028 | 9,979 | |
Thereafter | 25,001 | |
Total lease payments | 70,971 | |
Less: interest | (7,174) | |
Present value of operating lease liabilities | 63,797 | $ 50,269 |
2024 (remaining period) | 395 | |
2025 | 807 | |
2026 | 831 | |
2027 | 856 | |
2028 | 882 | |
Total sublease receipts | $ 3,771 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | May 16, 2023 | |
Debt Instrument [Line Items] | ||||
Interest paid | $ 6,802 | $ 2,724 | ||
Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured Loan, Unused Borrowing Capacity | $ 5,000 | |||
Unsecured Loan, Maturity Date | Apr. 30, 2025 | |||
Unsecured Loan, Amount Outstanding | $ 0 | $ 0 | ||
Revolving credit facility [Member] | Credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving Credit Facility, Current Borrowing Capacity | 600,000 | |||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||
Revolving Credit Facility, Expiration Date | Aug. 31, 2027 | |||
Long-term Debt | $ 75,000 | 95,000 | ||
Term loan facility | Credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving Credit Facility, Expiration Date | May 16, 2025 | |||
Long-term Debt | $ 180,000 | $ 180,000 | ||
Debt Instrument, Face Amount | $ 180,000 | |||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Revolving credit facility [Member] | Credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 0.50% | |||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | Term loan facility | Credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 0.50% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving credit facility [Member] | Credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 1% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Term loan facility | Credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 0.75% | |||
Prime Rate [Member] | Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 1% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Tax Rate | 23.50% | 23.20% | 23.60% | 23.40% |
Income Taxes Paid, Net | $ 52,018 | $ 37,213 | ||
Unrecognized Tax Benefits | $ 13,414 | 13,414 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 11,702 | 11,702 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,317 | $ 1,546 | 2,317 | $ 1,546 |
Minimum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | 1,500 | 1,500 | ||
Maximum [Member] | ||||
Expiration of statutes of limitations impact on UTB balance | $ 4,500 | $ 4,500 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense for stock-based compensation | $ 8,333 | $ 7,545 | $ 15,480 | $ 14,544 |
Granted, number of shares | 153 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 | |||
Exercised, number of shares | 0 | |||
Forfeited, number of shares | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 12 | 12 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 87.27 | $ 87.27 | ||
Outstanding, period end, intrinsic value | $ 890 | $ 890 | ||
Compensation expense not yet recognized, stock options | 0 | $ 0 | ||
Weighted average remaining contractual term, stock options | 2 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 | $ 31,275 | $ 31,275 | ||
Compensation expense yet to be recognized, period for recognition | 1 year 4 months 6 days | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 58 | |||
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] | ||||
Termination after grant date | 10 years | |||
Requisite service period | 3 years | |||
Termination period after termination of employment | 90 days | |||
Termination period after death | 1 year | |||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 1 year | |||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 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 | 95 | |||
Fair value on grant date less PV of dividends [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, number of shares | 23 | |||
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 Restri
Stock Based Compensation Restricted Stock Unit Awards (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 153 |
Restricted Stock Units (RSUs) [Member] | |
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 | 303 |
Vested, number of shares | (69) |
Forfeited, number of shares | (33) |
Outstanding, period end, number of shares | 354 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 190.08 |
Granted, weighted average grant date fair value | $ / shares | 178.63 |
Vested, weighted average grant date fair value | $ / shares | 183.35 |
Forfeited, weighted average grant date fair value | $ / shares | 197.38 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 185.77 |
Restricted Stock Units, Aggregate Intrinsic Value, Outstanding | $ | $ 57,773 |
Restricted Stock Units (RSUs) [Member] | Fair value on grant date less PV of dividends [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 95 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 58 |
Performance Shares [Member] | Fair value on grant date less PV of dividends [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 23 |
Performance Shares [Member] | Fair value under Monte Carlo [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted, number of shares | 35 |
Stock Based Compensation PSU Me
Stock Based Compensation PSU Measurement Date Assumptions (Details) - Compensation Peer Group [Member] - Performance Shares [Member] | Aug. 04, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Volatility | 25.60% |
Risk free interest rate | 4.48% |
Annual dividend based on most recent quarterly dividend | $ 2.08 |
Dividend yield | 1.23% |
Beginning average percentile rank for TSR | 74% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 91,965 | $ 80,775 | $ 193,644 | $ 187,324 |
Common share information: | ||||
Weighted average shares outstanding for basic earnings per share | 72,838 | 72,962 | 72,854 | 72,929 |
Dilutive effect of stock options, restricted stock units, and performance units | 146 | 182 | 145 | 212 |
Weighted average shares outstanding for diluted earnings per share | 72,984 | 73,144 | 72,999 | 73,141 |
Basic earnings per share | $ 1.26 | $ 1.11 | $ 2.66 | $ 2.57 |
Diluted earnings per share | $ 1.26 | $ 1.10 | $ 2.65 | $ 2.56 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24 | 31 | 22 | 25 |
Business Acquisitions (Details)
Business Acquisitions (Details) - Payrailz [Member] $ in Thousands | Aug. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |
Business Acquisition, Effective Date of Acquisition | Aug. 31, 2022 |
Payments to Acquire Businesses, Gross | $ 230,205 |
Escrow deposit related to acquisition | 48,500 |
Escrow deposit - final purchase price adjustment | 2,500 |
Escrow deposit - indemnification matters | 46,000 |
Current assets | 1,851 |
Identifiable intangible assets | 119,868 |
Deferred revenue | (8,104) |
Total other liabilities assumed | (749) |
Total identifiable net assets | 112,866 |
Net assets acquired | 230,205 |
Cash Acquired from Acquisition | 577 |
Acquired Receivables, Gross Contractual Amount | 978 |
Acquired Receivable, Fair Value | 978 |
Acquired Receivables, Estimated Uncollectible | 0 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Identifiable Intangible Assets Acquired | $ 6,109 |
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years |
Computer Software, Intangible Asset [Member] | |
Business Acquisition [Line Items] | |
Identifiable Intangible Assets Acquired | $ 112,505 |
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years |
Other Intangible Assets [Member] | |
Business Acquisition [Line Items] | |
Identifiable Intangible Assets Acquired | $ 1,254 |
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years |
Payments [Member] | |
Business Acquisition [Line Items] | |
Acquisition goodwill expected to be tax deductible | $ 117,339 |
Reportable Segment Informatio_3
Reportable Segment Information Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) segment | |
Segment Reporting [Abstract] | ||
Number of Reportable Segments | segment | 4 | |
Core [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reclassification of Revenue from Core to Corporate and Other | $ (1,851) | $ (3,661) |
Reclassification of Cost from Core to Corporate and Other | (1,658) | (3,294) |
Payments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reclassification of Revenue from Payments to Corporate and Other | (10) | (16) |
Reclassification of Cost from Payments to Corporate and Other | (658) | (1,261) |
Complementary [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reclassification of Revenue from Complementary to Corporate and Other | (174) | (108) |
Reclassification of Cost from Complementary to Corporate and Other | (326) | (659) |
Corporate and Other [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reclassification of Revenue from Core to Corporate and Other | 1,851 | 3,661 |
Reclassification of Revenue from Payments to Corporate and Other | 10 | 16 |
Reclassification of Revenue from Complementary to Corporate and Other | 174 | 108 |
Reclassification of Cost from Core to Corporate and Other | 1,658 | 3,294 |
Reclassification of Cost from Payments to Corporate and Other | 658 | 1,261 |
Reclassification of Cost from Complementary to Corporate and Other | $ 326 | $ 659 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 545,701 | $ 505,314 | $ 1,117,069 | $ 1,034,516 |
Cost of Revenue | 320,979 | 304,589 | 643,981 | 602,849 |
Research and Development | 35,478 | 36,561 | 72,370 | 69,554 |
Selling, General, and Administrative | 70,277 | 56,788 | 149,051 | 114,013 |
Total Expenses | 426,734 | 397,938 | 865,402 | 786,416 |
OPERATING INCOME | 118,967 | 107,376 | 251,667 | 248,100 |
INTEREST INCOME (EXPENSE) | 1,256 | (2,166) | 1,804 | (3,590) |
INCOME BEFORE INCOME TAXES | 120,223 | 105,210 | 253,471 | 244,510 |
Services and Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 311,992 | 290,700 | 654,197 | 610,849 |
Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 233,709 | 214,614 | 462,872 | 423,667 |
Core [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 165,601 | 153,539 | 352,041 | 326,853 |
Cost of Revenue | 69,370 | 66,666 | 145,296 | 137,270 |
SEGMENT INCOME | 96,231 | 86,873 | 206,745 | 189,583 |
Core [Member] | Services and Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 155,429 | 143,799 | 331,173 | 307,014 |
Core [Member] | Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 10,172 | 9,740 | 20,868 | 19,839 |
Payments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 203,839 | 191,477 | 403,195 | 378,010 |
Cost of Revenue | 111,623 | 107,413 | 220,449 | 207,965 |
SEGMENT INCOME | 92,216 | 84,064 | 182,746 | 170,045 |
Payments [Member] | Services and Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 21,060 | 19,330 | 40,962 | 37,982 |
Payments [Member] | Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 182,779 | 172,147 | 362,233 | 340,028 |
Complementary [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 152,466 | 142,121 | 313,833 | 290,539 |
Cost of Revenue | 64,023 | 58,944 | 126,298 | 117,049 |
SEGMENT INCOME | 88,443 | 83,177 | 187,535 | 173,490 |
Complementary [Member] | Services and Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 113,779 | 110,206 | 238,050 | 228,420 |
Complementary [Member] | Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 38,687 | 31,915 | 75,783 | 62,119 |
Corporate and Other [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 23,795 | 18,177 | 48,000 | 39,114 |
Cost of Revenue | 75,963 | 71,566 | 151,938 | 140,565 |
SEGMENT INCOME | (52,168) | (53,389) | (103,938) | (101,451) |
Corporate and Other [Member] | Services and Support [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 21,724 | 17,365 | 44,012 | 37,433 |
Corporate and Other [Member] | Processing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 2,071 | $ 812 | $ 3,988 | $ 1,681 |