Recent Accounting Pronouncements (Tables)

3 Months Ended

Sep. 30, 2018

ASU 2014-09

Summary of Impact of Adoption of ASC 606 on Financial Statements

The impact of adoption on our consolidated balance sheet is as follows (in thousands):

	June 30, 2018 As Reported Under ASC 605		Adjustments Due to ASC 606		July 1, 2018 Balance Under ASC 606
Assets:
Accounts receivable, net	$	806,871	$	20,454	$	827,325
Prepaid expenses and other current assets		58,126		2,342		60,468
Other long-term assets		39,175		3,923		43,098
Liabilities and Shareholders' Equity:
Other accrued expenses and current liabilities		150,602		2,212		152,814
Deferred income taxes		200,880		6,639		207,519
Other long-term liabilities		85,187		98		85,285
Retained earnings		2,126,790		17,770		2,144,560

The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the three months ended September 30, 2018 (in thousands):

	As Adjusted Under ASC 605		Effect of ASC 606		As Reported Under ASC 606
Revenue	$	1,158,702	$	7,162	$	1,165,864
Costs of revenue:
Direct costs		782,760		—		782,760
Indirect costs and selling expenses		264,700		57		264,757
Depreciation and amortization		18,747		—		18,747
Total costs of revenue		1,066,207		57		1,066,264
Income from operations		92,495		7,105		99,600
Interest expense and other, net		8,886		—		8,886
Income before taxes		83,609		7,105		90,714
Income tax expense (benefit)		10,087		1,794		11,881
Net income	$	73,522	$	5,311	$	78,833
Basic earnings per share	$	2.97	$	0.21	$	3.19
Diluted earnings per share	$	2.89	$	0.21	$	3.10

The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of September 30, 2018 (in thousands):

	As Adjusted Under ASC 605		Effect of ASC 606		As Reported Under ASC 606
Assets:
Accounts receivable, net	$	919,394	$	26,170	$	945,564
Prepaid expenses and other current assets		70,767		2,307		73,074
Other long-term assets		39,495		3,900		43,395
Liabilities and Shareholders' Equity:
Other accrued expenses and current liabilities		183,350		2,825		186,175
Deferred income taxes		211,307		6,471		217,778
Other long-term liabilities		82,139		—		82,139
Retained earnings		2,200,312		23,081		2,223,393