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 Statements of Income for the three and nine months ended March 31, 2018:



	Three Months Ended March 31, 2018									Nine Months Ended March 31, 2018
	As Previously Reported			Adjustments			As Adjusted			As Previously Reported			Adjustments			As Adjusted
REVENUE	$	384,684		$	(10,636	)	$	374,048		$	1,119,374		$	(26,833	)	$	1,092,541

EXPENSES
Cost of Revenue	221,592			(3,075		)	218,517			637,960			(8,428		)	629,532
Research and Development	22,591			—			22,591			65,934			—			65,934
Selling, General, and Administrative	44,185			(1,952		)	42,233			133,532			(7,117		)	126,415
Gain on Disposal of a Business	—			—			—			(1,894		)	—			(1,894		)
Total Expenses	288,368			(5,027		)	283,341			835,532			(15,545		)	819,987

OPERATING INCOME	96,316			(5,609		)	90,707			283,842			(11,288		)	272,554

INTEREST INCOME (EXPENSE)
Interest Income	130			—			130			424			—			424
Interest Expense	(734		)	—			(734		)	(1,173		)	—			(1,173		)
Total Interest Income (Expense)	(604		)	—			(604		)	(749		)	—			(749		)

INCOME BEFORE INCOME TAXES	95,712			(5,609		)	90,103			283,093			(11,288		)	271,805

PROVISION/ (BENEFIT) FOR INCOME TAXES	23,317			(2,300		)	21,017			(8,287		)	(17,107		)	(25,394		)

NET INCOME	$	72,395		$	(3,309	)	$	69,086		$	291,380		$	5,819		$	297,199

Basic earnings per share	$	0.94					$	0.89		$	3.77					$	3.85
Basic weighted average shares outstanding	77,247						77,247			77,249						77,249

Diluted earnings per share	$	0.93					$	0.89		$	3.76					$	3.83
Diluted weighted average shares outstanding	77,546						77,546			77,586						77,586

Condensed Consolidated Statement of Cash Flows for the nine months ended March 31, 2018:



	Nine Months Ended March 31, 2018
	As Previously Reported			Adjustments			As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	291,380		$	5,819		$	297,199
Adjustments to reconcile net income from operations to net cash from operating activities:
Depreciation	36,470			—			36,470
Amortization	75,787			—			75,787
Change in deferred income taxes	(70,104		)	(16,489		)	(86,593		)
Expense for stock-based compensation	7,834			—			7,834
(Gain)/loss on disposal of assets and businesses	(1,673		)	—			(1,673		)
Changes in operating assets and liabilities:
Change in receivables	113,465			28,334			141,799
Change in prepaid expenses, deferred costs and other	(17,332		)	(42,916		)	(60,248		)
Change in accounts payable	(432		)	—			(432		)
Change in accrued expenses	(6,971		)	2,799			(4,172		)
Change in income taxes	12,806			(619		)	12,187
Change in deferred revenues	(206,358		)	23,072			(183,286		)
Net cash from operating activities	234,872			—			234,872

CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(137,654		)	—			(137,654		)
Capital expenditures	(17,858		)	—			(17,858		)
Proceeds from the sale of businesses	350			—			350
Proceeds from the sale of assets	258			—			258
Internal use software	(6,965		)	—			(6,965		)
Computer software developed	(72,186		)	—			(72,186		)
Purchase of investments	(5,000		)	—			(5,000		)
Net cash from investing activities	(239,055		)	—			(239,055		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	125,000			—			125,000
Repayments on credit facilities	(70,000		)	—			(70,000		)
Purchase of treasury stock	(30,018		)	—			(30,018		)
Dividends paid	(76,429		)	—			(76,429		)
Proceeds from issuance of common stock upon exercise of stock options	176			—			176
Tax withholding payments related to share based compensation	(7,279		)	—			(7,279		)
Proceeds from sale of common stock	5,370			—			5,370
Net cash from financing activities	(53,180		)	—			(53,180		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	(57,363	)	$	—		$	(57,363	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	114,765		$	—		$	114,765
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	57,402		$	—		$	57,402