Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The impact of adoption of ASC 606 to the Company’s condensed consolidated statements of income and balance sheets are as follows:



	Three Months Ended September 30, 2018
	As Reported		Balances without adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands, except per share amounts)
Total net revenues	$	732,476	$	736,055	$	(3,579	)
Total cost of net revenues	103,917		103,739		178
Gross profit	628,559		632,316		(3,757		)
Total operating expenses	463,780		472,715		(8,935		)
Income from operations	164,779		159,601		5,178
Net income	$	158,857	$	154,513	$	4,344

Basic earnings per share	$	1.18	$	1.14	$	0.04
Diluted earnings per share	$	1.08	$	1.05	$	0.03



	Nine Months Ended September 30, 2018
	As Reported		Balances without adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands, except per share amounts)
Total net revenues	$	2,172,033	$	2,185,299	$	(13,266	)
Total cost of net revenues	320,952		319,673		1,279
Gross profit	1,851,081		1,865,626		(14,545		)
Total operating expenses	1,375,592		1,398,446		(22,854		)
Income from operations	475,489		467,180		8,309
Net income	$	409,949	$	404,710	$	5,239

Basic earnings per share	$	3.00	$	2.96	$	0.04
Diluted earnings per share	$	2.80	$	2.76	$	0.04



	As of September 30, 2018
	As Reported		Balances without adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands)
Prepaid and other current assets ⁽¹⁾	$	229,188	$	202,998	$	26,190
Other assets ⁽²⁾	116,031		48,648		67,383
Deferred tax assets, net	127,703		159,181		(31,478		)
Total assets	$	5,436,527	$	5,374,432	$	62,095

Other liabilities ⁽³⁾	144,892		131,807		13,085
Current portion of deferred revenues	1,212,280		1,260,727		(48,447		)
Long-term portion of deferred revenues	467,722		507,648		(39,926		)
Total liabilities	$	4,664,021	$	4,739,309	$	(75,288	)

Stockholders' Equity:
Retained earnings	$	4,052,211	$	3,914,828	$	137,383

(1) As reported primarily includes contract acquisition costs of $38.6 million. The balance without adoption of ASC 606 includes contract acquisition costs of $14.2 million.

(2) As reported primarily includes contract acquisition costs of $64.9 million.

(3) As reported and without ASC 606 includes deferred tax liabilities of $53.2 million.

Schedule of Reclassifications

Conforming changes have been made for all periods presented, as follows (in thousands):



Three Months Ended September 30, 2017
As Previously Reported			Amount Reclassified			As Reported
Revenues:						Revenues:
Software as a service	$	45,810	$	35,563		Subscription	$	81,373
Product and licenses ⁽¹⁾	192,102		(23,386		)	Product and license	168,716
License updates and maintenance ⁽²⁾	420,951		19,885			Support and services ⁽³⁾	440,836
Professional services	32,062		(32,062		)
Total net revenues	$	690,925	$	—		Total net revenues	$	690,925



Nine Months Ended September 30, 2017
As Previously Reported			Amount Reclassified			As Reported
Revenues:						Revenues:
Software as a service	$	126,053	$	99,007		Subscription	$	225,060
Product and licenses ⁽¹⁾	594,708		(64,718		)	Product and license	529,990
License updates and maintenance ⁽²⁾	1,232,734		59,045			Support and services ⁽³⁾	1,291,779
Professional services	93,334		(93,334		)
Total net revenues	$	2,046,829	$	—		Total net revenues	$	2,046,829


(1)	Product and licenses as previously reported included revenue from CSPs and on-premise subscriptions that are now included in Subscription. Current period presentation only includes revenues from perpetual offerings and hardware.


(2)	License updates and maintenance as previously reported included revenue from CSPs and on-premise license updates and maintenance that are now included in Subscription.


(3)	Support and services includes revenues from license updates and maintenance from perpetual offerings as well as professional services.