| Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
The effects of those adjustments to the Condensed Consolidated Statements of Cash Flows have been summarized in the table below:
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Originally Reported |
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Effect of Change |
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As Adjusted |
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(in thousands) |
Statement of Cash Flows for the six months ended June 30, 2017 |
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Net cash provided by operating activities |
$ |
80,464 |
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|
$ |
15,188 |
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$ |
95,652 |
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Net cash used in investing activities |
(158,007 |
) |
|
7,637 |
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|
(150,370 |
) |
Cash, cash equivalents and restricted cash at end of period |
324,591 |
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|
106,479 |
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|
431,070 |
|
We adopted the requirements of the new revenue standard on January 1, 2018 using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2018. Comparative information from prior year periods has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effects of the changes made to our condensed consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows:
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Balance at
December 31, 2017
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Adjustments due
to ASU 2014-09
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Balance at
January 1, 2018 |
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(in thousands) |
Assets |
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Accounts receivable, less allowance for doubtful accounts |
$ |
124,505 |
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|
$ |
(7,925 |
) |
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$ |
116,580 |
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Other current assets |
6,622 |
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|
2,771 |
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|
9,393 |
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Deferred tax assets, net |
44,887 |
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|
(780 |
) |
|
44,107 |
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Other assets |
11,010 |
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|
4,459 |
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|
15,469 |
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Liabilities |
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Current portion of deferred revenue |
116,622 |
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|
(3,696 |
) |
|
112,926 |
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Stockholders’ Equity |
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Accumulated deficit |
(75,046 |
) |
|
2,221 |
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|
(72,825 |
) |
In accordance with the new revenue standard requirements, the following tables summarize the effects of this new standard on selected unaudited line items within our Condensed Consolidated Statements of Operations and Balance Sheet:
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Three Months Ended June 30, 2018 |
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Six Months Ended June 30, 2018 |
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As reported |
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Balances without adoption of ASU 2014-09 |
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Effect of Change
on Net Income
Higher/(Lower) |
|
As reported |
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Balances without adoption of ASU 2014-09 |
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Effect of Change
on Net Income
Higher/(Lower) |
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(in thousands) |
Revenue |
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On demand |
$ |
206,945 |
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$ |
207,421 |
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$ |
(476 |
) |
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$ |
400,245 |
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|
$ |
400,876 |
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|
$ |
(631 |
) |
Professional and other |
9,307 |
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|
8,676 |
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|
631 |
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|
17,308 |
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|
16,095 |
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|
1,213 |
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Total revenue |
$ |
216,252 |
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$ |
216,097 |
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$ |
155 |
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$ |
417,553 |
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$ |
416,971 |
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$ |
582 |
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Operating expenses |
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Sales and marketing |
$ |
54,488 |
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$ |
56,785 |
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$ |
2,297 |
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$ |
104,729 |
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$ |
108,886 |
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$ |
4,157 |
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Net income before income taxes |
$ |
8,290 |
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$ |
5,838 |
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$ |
2,452 |
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$ |
18,890 |
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$ |
14,151 |
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$ |
4,739 |
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Income tax (benefit) expense |
(189 |
) |
|
(1,096 |
) |
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(907 |
) |
|
(490 |
) |
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(2,243 |
) |
|
(1,753 |
) |
Net income |
$ |
8,479 |
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|
$ |
6,934 |
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$ |
1,545 |
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$ |
19,380 |
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$ |
16,394 |
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$ |
2,986 |
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Balances at June 30, 2018 - as reported |
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Balances at June 30, 2018 without adoption of ASU 2014-09 |
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Effect of Change
Higher/(Lower) |
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(in thousands) |
Assets |
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Accounts receivable, less allowance for doubtful accounts |
$ |
112,484 |
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$ |
119,930 |
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$ |
(7,446 |
) |
Other current assets |
15,812 |
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|
11,085 |
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|
4,727 |
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Other assets |
20,710 |
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|
14,109 |
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|
6,601 |
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Liabilities |
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Current portion of deferred revenue |
111,238 |
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|
115,161 |
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(3,923 |
) |
Deferred revenue |
5,181 |
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|
5,181 |
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— |
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