Impacts on Financial Statements

The following tables summarize the impacts of ASC 606 adoption on the Company’s Condensed Consolidated Financial Statements:

Condensed Consolidated Balance Sheet as of June 30, 2018:



	As Previously Reported			Adjustments			As Adjusted
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	31,440		$	—		$	31,440
Receivables, net	291,630			5,641			297,271
Income tax receivable	21,671			—			21,671
Prepaid expenses and other	84,810			11,331			96,141
Deferred costs	38,985			(11,916		)	27,069
Total current assets	468,536			5,056			473,592
PROPERTY AND EQUIPMENT, net	286,850			—			286,850
OTHER ASSETS:
Non-current deferred costs	95,540			(20,675		)	74,865
Computer software, net of amortization	288,172			—			288,172
Other non-current assets	107,775			2,524			110,299
Customer relationships, net of amortization	115,034			—			115,034
Other intangible assets, net of amortization	38,467			—			38,467
Goodwill	649,929			—			649,929
Total other assets	1,294,917			(18,151		)	1,276,766
Total assets	$	2,050,303		$	(13,095	)	$	2,037,208
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	34,510		$	—		$	34,510
Accrued expenses	97,848			(9,084		)	88,764
Deferred revenues	355,538			(3,107		)	352,431
Total current liabilities	487,896			(12,191		)	475,705
LONG-TERM LIABILITIES:
Non-current deferred revenues	93,094			(75,610		)	17,484
Non-current deferred income tax liability	189,613			18,690			208,303
Other long-term liabilities	12,872			—			12,872
Total long-term liabilities	295,579			(56,920		)	238,659
Total liabilities	783,475			(69,111		)	714,364
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	—			—			—
Common stock - $0.01 par value; 250,000,000 shares authorized; 103,278,562 shares issued at June 30, 2018	1,033			—			1,033
Additional paid-in capital	464,138			—			464,138
Retained earnings	1,856,917			56,016			1,912,933
Less treasury stock at cost 26,107,903 shares at June 30, 2018	(1,055,260		)	—			(1,055,260		)
Total stockholders' equity	1,266,828			56,016			1,322,844
Total liabilities and equity	$	2,050,303		$	(13,095	)	$	2,037,208

Condensed Consolidated Statement of Income for the three and six months ended December 31, 2017:



	Three Months Ended December 31, 2017									Six Months Ended December 31, 2017
	As Previously Reported			Adjustments			As Adjusted			As Previously Reported			Adjustments			As Adjusted
REVENUE	$	374,756		$	(17,547	)	$	357,209		$	734,690		$	(16,197	)	$	718,493

EXPENSES
Cost of Revenue	211,653			(4,553		)	207,100			416,368			(5,352		)	411,016
Research and Development	22,414			—			22,414			43,343			—			43,343
Selling, General, and Administrative	45,613			(2,519		)	43,094			89,346			(5,165		)	84,181
Gain on Disposal of a Business	(189		)	—			(189		)	(1,894		)	—			(1,894		)
Total Expenses	279,491			(7,072		)	272,419			547,163			(10,517		)	536,646

OPERATING INCOME	95,265			(10,475		)	84,790			187,527			(5,680		)	181,847

INTEREST INCOME (EXPENSE)
Interest Income	146			—			146			293			—			293
Interest Expense	(250		)	—			(250		)	(439		)	—			(439		)
Total Interest Income (Expense)	(104		)	—			(104		)	(146		)	—			(146		)

INCOME BEFORE INCOME TAXES	95,161			(10,475		)	84,686			187,381			(5,680		)	181,701

PROVISION/ (BENEFIT) FOR INCOME TAXES	(60,413		)	(16,144		)	(76,557		)	(31,604		)	(14,808		)	(46,412		)

NET INCOME	$	155,574		$	5,669		$	161,243		$	218,985		$	9,128		$	228,113

Basic earnings per share	$	2.01					$	2.09		$	2.83					$	2.95
Basic weighted average shares outstanding	77,218						77,218			77,250						77,250

Diluted earnings per share	$	2.01					$	2.08		$	2.82					$	2.94
Diluted weighted average shares outstanding	77,565						77,565			77,606						77,606

Condensed Consolidated Statement of Cash Flows for the six months ended December 31, 2017:



	Six Months Ended December 31, 2017
	As Previously Reported			Adjustments			As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	218,985		$	9,128		$	228,113
Adjustments to reconcile net income from operations to net cash from operating activities:
Depreciation	24,602			—			24,602
Amortization	48,711			—			48,711
Change in deferred income taxes	(72,721		)	(14,319		)	(87,040		)
Expense for stock-based compensation	4,609			—			4,609
(Gain)/loss on disposal of assets and businesses	(1,841		)	—			(1,841		)
Changes in operating assets and liabilities:
Change in receivables	115,572			28,342			143,914
Change in prepaid expenses, deferred costs and other	(17,105		)	(40,109		)	(57,214		)
Change in accounts payable	5,371			—			5,371
Change in accrued expenses	(15,386		)	2,150			(13,236		)
Change in income taxes	2,317			(488		)	1,829
Change in deferred revenues	(136,206		)	15,296			(120,910		)
Net cash from operating activities	176,908			—			176,908

CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(137,654		)	—			(137,654		)
Capital expenditures	(12,249		)	—			(12,249		)
Proceeds from the sale of businesses	350			—			350
Proceeds from the sale of assets	205			—			205
Internal use software	(6,025		)	—			(6,025		)
Computer software developed	(46,936		)	—			(46,936		)
Net cash from investing activities	(202,309		)	—			(202,309		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	100,000			—			100,000
Repayments on credit facilities	(50,000		)	—			(50,000		)
Purchase of treasury stock	(30,018		)	—			(30,018		)
Dividends paid	(47,844		)	—			(47,844		)
Proceeds from issuance of common stock upon exercise of stock options	1			—			1
Tax withholding payments related to share based compensation	(7,144		)	—			(7,144		)
Proceeds from sale of common stock	3,360			—			3,360
Net cash from financing activities	(31,645		)	—			(31,645		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	(57,046	)	$	—		$	(57,046	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	114,765		$	—		$	114,765
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	57,719		$	—		$	57,719