Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

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



	Year Ended December 31, 2018
	As Reported		Balances without adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands, except per share amounts)
Total net revenues	$	2,973,903	$	2,966,848	$	7,055
Total cost of net revenues	433,803		431,974		1,829
Gross profit	2,540,100		2,534,874		5,226
Total operating expenses	1,862,140		1,890,692		(28,552		)
Income from operations	677,960		644,182		33,778
Net income	$	575,667	$	548,430	$	27,237

Basic earnings per share	$	4.23	$	4.03	$	0.20
Diluted earnings per share	$	3.94	$	3.76	$	0.18



	As of December 31, 2018
	As Reported		Balances without adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands)
Prepaid expenses and other current assets ⁽¹⁾	$	174,195	$	147,554	$	26,641
Other assets ⁽²⁾	124,578		52,732		71,846
Deferred tax assets, net	136,998		169,064		(32,066		)
Total assets	$	5,136,049	$	5,069,628	$	66,421

Other liabilities ⁽³⁾	148,499		135,430		13,069
Current portion of deferred revenues	1,345,243		1,413,839		(68,596		)
Long-term portion of deferred revenues	489,329		526,763		(37,434		)
Total liabilities	$	4,576,420	$	4,669,381	$	(92,961	)

Stockholders' Equity:
Retained earnings	$	4,169,019	$	4,009,637	$	159,382

(1) As reported primarily includes contract acquisition costs of $41.0 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 $68.2 million.

(3) As reported includes deferred tax liabilities of $54.7 million. The balance without adoption of ASC 606 includes deferred tax liabilities of $56.6 million.

Schedule of Reclassifications

This change in manner of presentation did not affect the Company's total net revenues, total cost of net revenues or gross margin. Conforming changes have been made for all periods presented, as follows (in thousands):



Year Ended December 31, 2017
As Previously Reported			Amount Reclassified			As Reported
Revenues:						Revenues:
Software as a service	$	175,762	$	138,973		Subscription	$	314,735
Product and licenses ⁽¹⁾	857,253		(90,476		)	Product and license	766,777
License updates and maintenance ⁽²⁾	1,659,936		83,238			Support and services ⁽³⁾	1,743,174
Professional services	131,735		(131,735		)
Total net revenues	$	2,824,686	$	—		Total net revenues	$	2,824,686



Year Ended December 31, 2016
As Previously Reported			Amount Reclassified			As Reported
Revenues:						Revenues:
Software as a service	$	134,682	$	110,924		Subscription	$	245,606
Product and licenses ⁽¹⁾	882,898		(71,923		)	Product and license	810,975
License updates and maintenance ⁽²⁾	1,587,271		92,228			Support and services ⁽³⁾	1,679,499
Professional services	131,229		(131,229		)
Total net revenues	$	2,736,080	$	—		Total net revenues	$	2,736,080


(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.

Schedule of Property and Equipment

Property and equipment consist of the following:



	December 31,
	2018			2017
	(In thousands)
Buildings	$	76,152		$	76,152
Computer equipment	189,333			176,140
Software	433,033			388,583
Equipment and furniture	78,401			73,700
Leasehold improvements	182,848			168,656
	959,767			883,231
Less: accumulated depreciation and amortization	(741,587		)	(675,892		)
Assets under construction	8,447			28,824
Land	16,769			16,769
Total	$	243,396		$	252,932

Schedule of Changes in Goodwill

The following table presents the change in goodwill during 2018 and 2017 (in thousands):



	Balance at January 1, 2018		Additions			Other		Balance at December 31, 2018		Balance at January 1, 2017		Additions			Other		Balance at December 31, 2017
Goodwill	$	1,614,494	$	188,176	(1)	$	—	$	1,802,670	$	1,585,893	$	28,601	(2)	$	—	$	1,614,494


(1)	Amount relates to preliminary purchase price allocation of goodwill associated with the 2018 business combinations. See Note 4 for more information regarding the Company's acquisitions.


(2)	Amount relates to the purchase price allocation of goodwill associated with the 2017 business combination. See Note 4 for more information regarding the Company's acquisitions.

Schedule of Intangible Assets

Intangible assets consist of the following (in thousands):



	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Weighted-Average Life (Years)
Product related intangible assets	$	746,152	$	601,993	6.06
Other	227,922		204,894		6.40
Total	$	974,074	$	806,887	6.14



	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Weighted-Average Life (Years)
Product related intangible assets	$	663,004	$	554,934	6.10
Other	222,923		189,041		6.49
Total	$	885,927	$	743,975	6.20

Schedule of Estimated Future Annual Amortization Expense of Intangible Assets

Estimated future amortization expense of intangible assets with finite lives as of December 31, 2018 is as follows (in thousands):



Year ending December 31,
2019	$	50,981
2020	38,482
2021	24,494
2022	22,644
2023	19,292
Thereafter	11,294
Total	$	167,187

Disaggregation of Revenue

Timing of revenue recognition



	For the Year Ended December 31, 2018
	(In Thousands)
Products and services transferred at a point in time	$	821,111
Products and services transferred over time	2,152,792
Total net revenues	$	2,973,903

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period (in thousands):



	<1-3 years		3-5 years		5 years or more		Total
Subscription	$	431,527	$	45,790	$	535	$	477,852
Support and services	1,637,387		55,738		2,059		1,695,184
Total net revenues	$	2,068,914	$	101,528	$	2,594	$	2,173,036