Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of applying ASC 606 and ASC 340-40 to active contracts as of the adoption date resulted in the following adjustments to the Condensed Consolidated Balance Sheet as of January 1, 2018 (in thousands):

	As previously Reported at December 31, 2017		ASC 606 Adjustments			As Adjusted January 1, 2018
Assets
Accounts receivable, net	$	244,416	$	102		$	244,518
Other current assets	41,799		(1,628		)	40,171
Deferred tax assets	45,083		(1,466		)	43,617
Other assets	15,504		8,062			23,566
Liabilities
Deferred revenue	55,833		(95		)	55,738
Noncurrent contingent and other liabilities	28,801		491			29,292
Stockholders’ equity:
Retained earnings	402,544		4,674			407,218

The impact of adopting ASC 606 and ASC 340-40 on our Condensed Consolidated Statement of Operations is summarized as follows (in thousands):

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	Amounts in Accordance with ASC 606			Amounts in Accordance with ASC 605			Effect of change higher (lower)			Amounts in Accordance with ASC 606			Amounts in Accordance with ASC 605			Effect of change higher (lower)
Revenue	$	261,072		$	260,195		$	877		$	500,938		$	498,602		$	2,336
Cost of revenue	132,484			132,625			(141		)	253,243			253,442			(199		)
Gross profit	128,588			127,570			1,018			247,695			245,160			2,535
Operating expenses	114,944			115,069			(125		)	236,116			236,102			14
Income from operations	13,644			12,501			1,143			11,579			9,058			2,521
Interest income and other income (expense), net	(355		)	(490		)	135			934			624			310
Income before income taxes	8,300			7,022			1,278			2,570			(261		)	2,831
Provision for income taxes	(4,532		)	(4,386		)	(146		)	(2,397		)	(2,102		)	(295		)
Net income	3,768			2,636			1,132			173			(2,363		)	2,536

The impact of adopting ASC 606 and ASC 340-40 on our Condensed Consolidated Balance Sheet as of June 30, 2018 was as follows (in thousands):

	Amounts in Accordance with ASC 606		Amounts in Accordance with ASC 605		Effect of change higher (lower)
Assets
Accounts receivable, net	$	243,400	$	240,814	$	2,586
Other current assets	57,814		59,243		(1,429		)
Deferred tax assets	44,384		46,145		(1,761		)
Other assets	29,885		21,837		8,048
Liabilities
Deferred revenue	66,581		66,735		(154		)
Noncurrent contingent and other liabilities	20,185		19,798		387
Stockholders’ equity
Retained earnings	407,392		400,181		7,211

Summary of Disaggregated Revenue by Source

The following table presents our disaggregated revenue by source (in thousands). Sales and usage-based taxes are excluded from revenue:

	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Industrial Inkjet		Productivity Software		Fiery		Total		Industrial Inkjet		Productivity Software		Fiery		Total
Major Products and Service Lines:
Industrial Inkjet
Printers and parts	$	97,599	$	—	$	—	$	97,599	$	185,973	$	—	$	—	$	185,973
Ink, supplies, and maintenance	58,835		—		—		58,835		112,670		—		—		112,670
Productivity Software															—
Licenses	—		10,656		—		10,656		—		23,312		—		23,312
Professional services	—		8,025		—		8,025		—		15,570		—		15,570
Maintenance and subscriptions	—		22,931		—		22,931		—		46,505		—		46,505
Fiery															—
Digital front ends and related  products	—		—		59,360		59,360		—		—		109,456		109,456
Maintenance and subscriptions	—		—		3,666		3,666		—		—		7,452		7,452
Total	$	156,434	$	41,612	$	63,026	$	261,072	$	298,643	$	85,387	$	116,908	$	500,938
Timing of Revenue Recognition:
Transferred at a Point in Time	$	151,149	$	10,656	$	59,360	$	221,165	$	288,259	$	23,312	$	109,456	$	421,027
Transferred Over Time	5,285		30,956		3,666		39,907		10,384		62,075		7,452		79,911
Total	$	156,434	$	41,612	$	63,026	$	261,072	$	298,643	$	85,387	$	116,908	$	500,938
Recurring/Non-Recurring:
Non-Recurring	$	97,599	$	18,681	$	59,360	$	175,640	$	185,973	$	38,882	$	109,456	$	334,311
Recurring	58,835		22,931		3,666		85,432		112,670		46,505		7,452		166,627
Total	$	156,434	$	41,612	$	63,026	$	261,072	$	298,643	$	85,387	$	116,908	$	500,938

Summary of Unbilled Accounts Receivable and Deferred Revenue

The following table reflects the balances in unbilled accounts receivable and deferred revenue (in thousands):

	June 30, 2018		January 1, 2018
Unbilled accounts receivable – current	$	30,557	$	23,296
Unbilled accounts receivable – noncurrent	4,055		4,122
Deferred revenue – current	66,581		55,738
Deferred revenue – noncurrent	434		565