Revision of Prior Period Financial Statements (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables reflect the impact of the revision to the specific line items presented in our previously reported (a) consolidated balance sheet as of December 31, 2023; (b) consolidated statements of operations and comprehensive income for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, and for the quarterly periods ended June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023; (c) consolidated statements of cash flows for the years ended December 31, 2023 and December 31, 2022, and for the year to date periods ended June 30, 2024, March 31, 2024, September 30, 2023; and (d) consolidated statements of stockholder's equity for the quarterly periods ending December 31, 2022 through June 30, 2024.

Consolidated Balance Sheet

(in thousands)

As of December 31, 2023	As Reported		Revision		As Revised
Accounts and notes receivable, net of allowance of $2,392 as of December 31, 2023	$	417,690	$	(4,729)	$	412,961
Contract assets, net	275,779		11,453		287,232
Prepaid expenses and other current assets	112,786		(9,731)		103,055
Total current assets	2,396,649		(3,007)		2,393,642
Deferred tax assets, net	229,513		(1,729)		227,784
Long-term contract assets, net	77,710		6,672		84,382
Other long-term assets	220,638		(29,607)		191,031
Total assets	3,436,845		(27,671)		3,409,174
Accounts payable	88,326		(22,474)		65,852
Accrued liabilities	188,230		5,320		193,550
Current portion of deferred revenue	491,691		(21,276)		470,415
Total current liabilities	799,969		(38,430)		761,539
Deferred revenue, net of current portion	281,852		(10,951)		270,901
Other long-term liabilities	2,936		17,979		20,915
Total liabilities	1,824,811		(31,402)		1,793,409
Retained earnings	431,249		3,731		434,980
Total stockholders’ equity	1,612,034		3,731		1,615,765
Total liabilities and stockholders’ equity	$	3,436,845	$	(27,671)	$	3,409,174

Consolidated Statements of Operations and Comprehensive Income

(in thousands, except per share data)

Three Months Ended June 30, 2024	As Reported		Revision		As Revised
Net sales from products	$	295,185	$	(2,422)	$	292,763
Net sales from services	208,914		1,559		210,473
Net sales	504,099		(863)		503,236
Cost of product sales	145,154		(2,527)		142,627
Cost of service sales	55,210		(757)		54,453
Cost of sales	200,364		(3,284)		197,080
Gross margin	303,735		2,421		306,156
Sales, general and administrative	169,427		1,537		170,964
Total operating expenses	270,861		1,537		272,398
Income from operations	32,874		884		33,758
Income before provision for income taxes	50,590		884		51,474
Provision for (benefit from) income taxes	9,793		208		10,001
Net income	$	40,797	$	676	$	41,473
Net income per common and common equivalent shares - Basic	$	0.54	$	0.01	$	0.55
Comprehensive income	$	38,189	$	676	$	38,865

Six Months Ended June 30, 2024	As Reported		Revision		As Revised
Net sales from products	$	567,233	$	(4,046)	$	563,187
Net sales from services	397,602		2,318		399,920
Net sales	964,835		(1,728)		963,107
Cost of product sales	296,852		(2,065)		294,787
Cost of service sales	104,202		(666)		103,536
Cost of sales	401,054		(2,731)		398,323
Gross margin	563,781		1,003		564,784
Sales, general and administrative	322,096		(57)		322,039
Total operating expenses	514,627		(57)		514,570
Income from operations	49,154		1,060		50,214
Income before provision for income taxes	216,310		1,060		217,370
Provision for (benefit from) income taxes	42,295		250		42,545
Net income	$	174,015	$	810	$	174,825
Net income per common and common equivalent shares - Basic	$	2.31	$	0.01	$	2.32
Net income per common and common equivalent shares - Diluted	$	2.25	$	0.01	$	2.26
Comprehensive income	$	170,500	$	810	$	171,310

Three Months Ended March 31, 2024	As Reported		Revision		As Revised
Net sales from products	$	272,048	$	(1,624)	$	270,424
Net sales from services	188,688		759		189,447
Net sales	460,736		(865)		459,871
Cost of product sales	151,698		462		152,160
Cost of service sales	48,992		91		49,083
Cost of sales	200,690		553		201,243
Gross margin	260,046		(1,418)		258,628
Sales, general and administrative	152,669		(1,594)		151,075
Total operating expenses	243,766		(1,594)		242,172
Income from operations	16,280		176		16,456
Income before provision for income taxes	165,720		176		165,896
Provision for (benefit from) income taxes	32,502		42		32,544
Net income	$	133,218	$	134	$	133,352
Comprehensive income	$	132,311	$	134	$	132,445

Three Months Ended December 31, 2023	As Reported		Revision		As Revised
Net sales from products	$	258,405	$	(1,966)	$	256,439
Net sales from services	173,737		200		173,937
Net sales	432,142		(1,766)		430,376
Cost of product sales	125,664		(1,764)		123,900
Cost of service sales	42,591		(107)		42,484
Cost of sales	168,255		(1,871)		166,384
Gross margin	263,887		105		263,992
Sales, general and administrative	137,106		167		137,273
Total operating expenses	221,078		167		221,245
Income from operations	42,809		(62)		42,747
Income before provision for income taxes	55,802		(62)		55,740
Provision for (benefit from) income taxes	(1,469)		148		(1,321)
Net income	$	57,271	$	(210)	$	57,061
Comprehensive income	$	59,461	$	(210)	$	59,251

Year Ended December 31, 2023	As Reported		Revision		As Revised
Net sales from products	$	967,711	$	(3,709)	$	964,002
Net sales from services	595,680		1,017		596,697
Net sales	1,563,391		(2,692)		1,560,699
Cost of product sales	450,718		(3,010)		447,708
Cost of service sales	157,291		247		157,538
Cost of sales	608,009		(2,763)		605,246
Gross margin	955,382		71		955,453
Sales, general and administrative	496,874		(1,990)		494,884
Total operating expenses	800,593		(1,990)		798,603
Income from operations	154,789		2,061		156,850
Income before provision for income taxes	155,000		2,061		157,061
Provision for (benefit from) income taxes	(19,227)		505		(18,722)
Net income	$	174,227	$	1,556	$	175,783
Net income per common and common equivalent shares - Basic	$	2.35	$	0.02	$	2.37
Net income per common and common equivalent shares - Diluted	$	2.31	$	0.02	$	2.33
Comprehensive income	$	170,727	$	1,556	$	172,283

Three Months Ended September 30, 2023	As Reported		Revision		As Revised
Net sales from products	$	256,443	$	(1,388)	$	255,055
Net sales from services	157,158		1,065		158,223
Net sales	413,601		(323)		413,278
Cost of product sales	116,278		(1,665)		114,613
Cost of service sales	42,051		(42)		42,009
Cost of sales	158,329		(1,707)		156,622
Gross margin	255,272		1,384		256,656
Sales, general and administrative	123,279		(922)		122,357
Total operating expenses	200,159		(922)		199,237
Income from operations	55,113		2,306		57,419
Income before provision for income taxes	69,423		2,306		71,729
Provision for (benefit from) income taxes	10,026		394		10,420
Net income	$	59,397	$	1,912	$	61,309
Net income per common and common equivalent shares - Basic	$	0.79	$	0.03	$	0.82
Net income per common and common equivalent shares - Diluted	$	0.78	$	0.03	$	0.81
Comprehensive income	$	53,254	$	1,912	$	55,166

Nine Months Ended September 30, 2023	As Reported		Revision		As Revised
Net sales from products	$	709,306	$	(1,743)	$	707,563
Net sales from services	421,943		817		422,760
Net sales	1,131,249		(926)		1,130,323
Cost of product sales	325,054		(1,246)		323,808
Cost of service sales	114,700		354		115,054
Cost of sales	439,754		(892)		438,862
Gross margin	691,495		(34)		691,461
Sales, general and administrative	359,768		(2,157)		357,611
Total operating expenses	579,515		(2,157)		577,358
Income from operations	111,980		2,123		114,103
Income before provision for income taxes	99,198		2,123		101,321
Provision for (benefit from) income taxes	(17,758)		357		(17,401)
Net income	$	116,956	$	1,766	$	118,722
Net income per common and common equivalent shares - Basic	$	1.58	$	0.03	$	1.61
Net income per common and common equivalent shares - Diluted	$	1.56	$	0.02	$	1.58
Comprehensive income	$	111,266	$	1,766	$	113,032

Year Ended December 31, 2022	As Reported		Revision		As Revised
Net sales from products	$	801,388	$	(4,211)	$	797,177
Net sales from services	388,547		1,419		389,966
Net sales	1,189,935		(2,792)		1,187,143
Cost of product sales	363,219		(2,310)		360,909
Cost of service sales	98,078		2,043		100,121
Cost of sales	461,297		(267)		461,030
Gross margin	728,638		(2,525)		726,113
Sales, general and administrative	401,575		(2,245)		399,330
Total operating expenses	635,385		(2,245)		633,140
Income from operations	93,253		(280)		92,973
Income before provision for income taxes	196,518		(280)		196,238
Provision for (benefit from) income taxes	49,379		(71)		49,308
Net income	$	147,139	$	(209)	$	146,930
Comprehensive income	$	141,277	$	(209)	$	141,068

There was no impact on disclosed income per common and common equivalent shares for the year ended December 31, 2022.

Year Ended December 31, 2021	As Reported		Revision		As Revised
Net sales from products	$	608,525	$	(1,629)	$	606,896
Net sales from services	254,856		3,886		258,742
Net sales	863,381		2,257		865,638
Cost of product sales	260,098		(2,452)		257,646
Cost of service sales	62,373		(103)		62,270
Cost of sales	322,471		(2,555)		319,916
Gross margin	540,910		4,812		545,722
Sales, general and administrative	515,007		(162)		514,845
Total operating expenses	709,033		(162)		708,871
Income from operations	(168,123)		4,974		(163,149)
Income before provision for income taxes	(141,375)		4,974		(136,401)
Provision for (benefit from) income taxes	(81,357)		1,295		(80,062)
Net income	$	(60,018)	$	3,679	$	(56,339)
Net income per common and common equivalent shares - Basic	$	(0.91)	$	0.06	$	(0.85)
Net income per common and common equivalent shares - Diluted	$	(0.91)	$	0.06	$	(0.85)
Comprehensive income	$	(61,476)	$	3,679	$	(57,797)

Consolidated Statements of Stockholders' Equity

(in thousands)

	As Reported				Revision				As Revised
	Retained Earnings		Total Stockholders’ Equity		Retained Earnings		Total Stockholders’ Equity		Retained Earnings		Total Stockholders’ Equity
Balance, December 31, 2022	$	257,022	$	1,268,491	$	2,175	$	2,175	$	259,197	$	1,270,666
Net income	45,139		45,139		760		760		45,899		45,899
Balance, March 31, 2023	$	302,161	$	1,402,995	$	2,935	$	2,935	$	305,096	$	1,405,930
Net income	12,420		12,420		(906)		(906)		11,514		11,514
Balance, June 30, 2023	$	314,581	$	1,444,998	$	2,029	$	2,029	$	316,610	$	1,447,027
Net income	59,397		59,397		1,912		1,912		61,309		61,309
Balance, September 30, 2023	$	373,978	$	1,521,117	$	3,941	$	3,941	$	377,919	$	1,525,058
Net income	57,271		57,271		(210)		(210)		57,061		57,061
Balance, December 31, 2023	$	431,249	$	1,612,034	$	3,731	$	3,731	$	434,980	$	1,615,765
Net income	133,218		133,218		134		134		133,352		133,352
Balance, March 31, 2024	$	564,467	$	1,818,015	$	3,865	$	3,865	$	568,332	$	1,821,880
Net income	40,797		40,797		676		676		41,473		41,473
Balance, June 30, 2024	$	605,264	$	1,928,840	$	4,541	$	4,541	$	609,805	$	1,933,381

Consolidated Statements of Cash Flows

(in thousands)

Six Months Ended June 30, 2024	As Reported		Revision		As Revised
Cash flows from operating activities:
Net income	$	174,015	$	810	$	174,825
Provision for bad debts and inventory	2,241		8,843		11,084
Change in assets and liabilities:
Receivables and contract assets	(60,513)		(16,579)		(77,092)
Inventory	(8,116)		(8,843)		(16,959)
Deferred revenue	(12,067)		3,568		(8,499)
Accounts payable, accrued and other liabilities	(43,071)		(461)		(43,532)
Other - net	(4,252)		12,662		8,410

Three Months Ended March 31, 2024	As Reported		Revision		As Revised
Cash flows from operating activities:
Net income	$	133,218	$	134	$	133,352
Provision for bad debts and inventory	216		1,364		1,580
Change in assets and liabilities:
Receivables and contract assets	(51,132)		(5,605)		(56,737)
Inventory	(710)		(1,364)		(2,074)
Deferred revenue	20,743		(1,622)		19,121
Accounts payable, accrued and other liabilities	(84,289)		(1,551)		(85,840)
Other - net	2		8,644		8,646

Year Ended December 31, 2023	As Reported		Revision		As Revised
Cash flows from operating activities:
Net income	$	174,227	$	1,556	$	175,783
Deferred income taxes	(73,002)		505		(72,497)
Provision for bad debts and inventory	1,090		4,394		5,484
Change in assets and liabilities:
Receivables and contract assets	(172,524)		(6,465)		(178,989)
Inventory	(71,896)		(5,730)		(77,626)
Deferred revenue	164,043		(17,224)		146,819
Accounts payable, accrued and other liabilities	64,384		945		65,329
Other - net	(102,370)		22,019		(80,351)

Nine Months Ended September 30, 2023	As Reported		Revision		As Revised
Cash flows from operating activities:
Net income	$	116,956	$	1,766	$	118,722
Deferred income taxes	(53,311)		356		(52,955)
Provision for bad debts and inventory	887		4,196		5,083
Change in assets and liabilities:
Receivables and contract assets	(182,468)		(4,146)		(186,614)
Inventory	(59,564)		(5,532)		(65,096)
Deferred revenue	118,294		(14,908)		103,386
Accounts payable, accrued and other liabilities	13,423		(56)		13,367
Other - net	(64,608)		18,324		(46,284)

Year Ended December 31, 2022	As Reported		Revision		As Revised
Cash flows from operating activities:
Net income	$	147,139	$	(209)	$	146,930
Deferred income taxes	22,090		(71)		22,019
Provision for bad debts and inventory	699		2		701
Change in assets and liabilities:
Receivables and contract assets	(73,228)		(4,998)		(78,226)
Inventory	(95,987)		976		(95,011)
Deferred revenue	159,718		(4,152)		155,566
Accounts payable, accrued and other liabilities	80,757		221		80,978
Other - net	(52,207)		8,231		(43,976)