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Revision of Prior Period Financial Statements | 12 Months Ended
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Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract] |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements As previously disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 and in the Original 2024 Annual Report and discussed in Note 1 “Organization and Summary of Significant Accounting Policies”, separate from the restatement discussed in Note 1 “Organization and Summary of Significant Accounting Policies”, in preparing the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2024, we identified errors in our previously issued financial statements related to our historical conclusions of principal vs. agent accounting of certain reseller arrangements under ASC 606 and concluded they were not material to any previously issued financial statements. The identified errors impacted our previously issued 2021 and 2022 annual financial statements, 2023 quarterly and annual financial statements, and 2024 quarterly financial statements through June 30, 2024. Consistent with revising our quarterly financial statements as of September 30, 2024, we made adjustments to the prior period amounts presented in these financial statements accordingly. Furthermore, we made adjustments to correct for other previously identified immaterial errors. The following tables reflect the impact of the revision to the specific line items presented in our previously reported (a) consolidated balance sheet as of December 31, 2023; (b) consolidated statements of operations and comprehensive income for the years ended December 31, 2023 and December 31, 2022; (c) consolidated statements of stockholders' equity for the years ended December 31, 2023 and December 31, 2022; and (d) consolidated statements of cash flows for the years ended December 31, 2023 and December 31, 2022. Consolidated Balance Sheet (in thousands)
As of December 31, 2023 |  | As Reported |  | Revision |  | As Revised
Accounts and notes receivable, net of allowance of $2,392 as of December 31, 2023 |  | $ | 417,690 |  |  | $ | (4,729) |  |  | $ | 412,961 |
Contract assets, net |  | 275,779 |  |  | 11,453 |  |  | 287,232 |
Prepaid expenses and other current assets |  | 112,786 |  |  | (9,731) |  |  | 103,055 |
Total current assets |  | 2,396,649 |  |  | (3,007) |  |  | 2,393,642 |
Deferred tax assets, net |  | 229,513 |  |  | (1,729) |  |  | 227,784 |
Long-term contract assets, net |  | 77,710 |  |  | 6,672 |  |  | 84,382 |
Other long-term assets |  | 220,638 |  |  | (29,607) |  |  | 191,031 |
Total assets |  | 3,436,845 |  |  | (27,671) |  |  | 3,409,174 |
Accounts payable |  | 88,326 |  |  | (22,474) |  |  | 65,852 |
Accrued liabilities |  | 188,230 |  |  | 5,320 |  |  | 193,550 |
Current portion of deferred revenue |  | 491,691 |  |  | (21,276) |  |  | 470,415 |
Total current liabilities |  | 799,969 |  |  | (38,430) |  |  | 761,539 |
Deferred revenue, net of current portion |  | 281,852 |  |  | (10,951) |  |  | 270,901 |
Other long-term liabilities |  | 2,936 |  |  | 17,979 |  |  | 20,915 |
Total liabilities |  | 1,824,811 |  |  | (31,402) |  |  | 1,793,409 |
Retained earnings |  | 431,249 |  |  | 3,731 |  |  | 434,980 |
Total stockholders’ equity |  | 1,612,034 |  |  | 3,731 |  |  | 1,615,765 |
Total liabilities and stockholders’ equity |  | $ | 3,436,845 |  |  | $ | (27,671) |  |  | $ | 3,409,174 |
Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data)
Year Ended December 31, 2023 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 967,711 |  |  | $ | (3,709) |  |  | $ | 964,002 |
Net sales from services |  | 595,680 |  |  | 1,017 |  |  | 596,697 |
Net sales |  | 1,563,391 |  |  | (2,692) |  |  | 1,560,699 |
Cost of product sales |  | 450,718 |  |  | (3,010) |  |  | 447,708 |
Cost of service sales |  | 157,291 |  |  | 247 |  |  | 157,538 |
Cost of sales |  | 608,009 |  |  | (2,763) |  |  | 605,246 |
Gross margin |  | 955,382 |  |  | 71 |  |  | 955,453 |
Selling, general and administrative |  | 496,874 |  |  | (1,990) |  |  | 494,884 |
Total operating expenses |  | 800,593 |  |  | (1,990) |  |  | 798,603 |
Income from operations |  | 154,789 |  |  | 2,061 |  |  | 156,850 |
Income before provision for income taxes |  | 155,000 |  |  | 2,061 |  |  | 157,061 |
Provision for (benefit from) income taxes |  | (19,227) |  |  | 505 |  |  | (18,722) |
Net income |  | $ | 174,227 |  |  | $ | 1,556 |  |  | $ | 175,783 |
Net income per common and common equivalent shares - Basic |  | $ | 2.35 |  |  | $ | 0.02 |  |  | $ | 2.37 |
Net income per common and common equivalent shares - Diluted |  | $ | 2.31 |  |  | $ | 0.02 |  |  | $ | 2.33 |
Comprehensive income |  | $ | 170,727 |  |  | $ | 1,556 |  |  | $ | 172,283 |
Year Ended December 31, 2022 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 801,388 |  |  | $ | (4,211) |  |  | $ | 797,177 |
Net sales from services |  | 388,547 |  |  | 1,419 |  |  | 389,966 |
Net sales |  | 1,189,935 |  |  | (2,792) |  |  | 1,187,143 |
Cost of product sales |  | 363,219 |  |  | (2,310) |  |  | 360,909 |
Cost of service sales |  | 98,078 |  |  | 2,043 |  |  | 100,121 |
Cost of sales |  | 461,297 |  |  | (267) |  |  | 461,030 |
Gross margin |  | 728,638 |  |  | (2,525) |  |  | 726,113 |
Selling, general and administrative |  | 401,575 |  |  | (2,245) |  |  | 399,330 |
Total operating expenses |  | 635,385 |  |  | (2,245) |  |  | 633,140 |
Income from operations |  | 93,253 |  |  | (280) |  |  | 92,973 |
Income before provision for income taxes |  | 196,518 |  |  | (280) |  |  | 196,238 |
Provision for (benefit from) income taxes |  | 49,379 |  |  | (71) |  |  | 49,308 |
Net income |  | $ | 147,139 |  |  | $ | (209) |  |  | $ | 146,930 |
Comprehensive income |  | $ | 141,277 |  |  | $ | (209) |  |  | $ | 141,068 |
There was no impact on disclosed basic and diluted income per common and common equivalent shares for the year ended December 31, 2022. Consolidated Statements of Stockholders' Equity (in thousands)
|  | As Reported |  | Revision |  | As Revised
|  | Retained Earnings |  | Total Stockholders’ Equity |  | Retained Earnings |  | Total Stockholders’ Equity |  | Retained Earnings |  | Total Stockholders’ Equity
Balance, December 31, 2021 |  | $ | 109,883 |  |  | $ | 1,047,849 |  |  | $ | 2,384 |  |  | $ | 2,384 |  |  | $ | 112,267 |  |  | $ | 1,050,233 |
Net income |  | 147,139 |  |  | 147,139 |  |  | (209) |  |  | (209) |  |  | 146,930 |  |  | 146,930 |
Balance, December 31, 2022 |  | 257,022 |  |  | 1,268,491 |  |  | 2,175 |  |  | 2,175 |  |  | 259,197 |  |  | 1,270,666 |
Net income |  | 174,227 |  |  | 174,227 |  |  | 1,556 |  |  | 1,556 |  |  | 175,783 |  |  | 175,783 |
Balance, December 31, 2023 |  | $ | 431,249 |  |  | $ | 1,612,034 |  |  | $ | 3,731 |  |  | $ | 3,731 |  |  | $ | 434,980 |  |  | $ | 1,615,765 |
Consolidated Statements of Cash Flows (in thousands)
Year Ended December 31, 2023 |  | As Reported |  | Revision |  | As Revised
Cash flows from operating activities: |  |  |  |  |  |
Net income |  | $ | 174,227 |  |  | $ | 1,556 |  |  | $ | 175,783 |
Deferred income taxes |  | (73,002) |  |  | 505 |  |  | (72,497) |
Provision for bad debts and inventory |  | 1,090 |  |  | 4,394 |  |  | 5,484 |
Change in assets and liabilities: |  |  |  |  |  |
Receivables and contract assets |  | (172,524) |  |  | (6,465) |  |  | (178,989) |
Inventory |  | (71,896) |  |  | (5,730) |  |  | (77,626) |
Deferred revenue |  | 164,043 |  |  | (17,224) |  |  | 146,819 |
Accounts payable, accrued and other liabilities |  | 64,384 |  |  | 945 |  |  | 65,329 |
Other - net |  | (102,370) |  |  | 22,019 |  |  | (80,351) |
Net cash provided by operating activities |  | $ | 189,263 |  |  | $ | — |  |  | $ | 189,263 |
Other than the impact to the captions noted above, there was no impact on total cash flows from operating activities, or to cash flows from investing or financing activities.
Year Ended December 31, 2022 |  | As Reported |  | Revision |  | As Revised
Cash flows from operating activities: |  |  |  |  |  |
Net income |  | $ | 147,139 |  |  | $ | (209) |  |  | $ | 146,930 |
Deferred income taxes |  | 22,090 |  |  | (71) |  |  | 22,019 |
Provision for bad debts and inventory |  | 699 |  |  | 2 |  |  | 701 |
Change in assets and liabilities: |  |  |  |  |  |
Receivables and contract assets |  | (73,228) |  |  | (4,998) |  |  | (78,226) |
Inventory |  | (95,987) |  |  | 976 |  |  | (95,011) |
Deferred revenue |  | 159,718 |  |  | (4,152) |  |  | 155,566 |
Accounts payable, accrued and other liabilities |  | 80,757 |  |  | 221 |  |  | 80,978 |
Other - net |  | (52,207) |  |  | 8,231 |  |  | (43,976) |
Net cash provided by operating activities |  | $ | 235,361 |  |  | $ | — |  |  | $ | 235,361 |
Other than the impact to the captions noted above, there was no impact on total cash flows from operating activities, or to cash flows from investing or financing activities. Impact of Revision on Quarterly Statements of Operations and Comprehensive Income (Unaudited) Condensed Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data)
|  | As Reported
Three Months Ended |  | December 31, 2024 |  | September 30, 2024
Net sales |  | $ | 575,145 |  | $ | 544,274
Gross margin |  | 345,849 |  | 330,747
Income (loss) from operations |  | (15,755) |  | 24,081
Net income |  | 135,184 |  | 67,025
Net income per common and common equivalent shares - Basic |  | $ | 1.77 |  | $ | 0.89
Net income per common and common equivalent shares - Diluted |  | $ | 1.67 |  | $ | 0.86
As discussed within Note 1 “Organization and Summary of Significant Accounting Policies”, we recorded an out of period adjustment in the three months ended December 31, 2024. This adjustment reduced revenue and net income by $5.1 million and $3.7 million, respectively. Of this total adjustment, $3.3 million and $2.3 million for revenue and net income, respectively, pertained to prior fiscal years. These errors originated in prior years and were immaterial to each respective prior period.
Three Months Ended June 30, 2024 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 295,185 |  | $ | (2,422) |  | $ | 292,763
Net sales from services |  | 208,914 |  | 1,559 |  | 210,473
Net sales |  | 504,099 |  | (863) |  | 503,236
Cost of product sales |  | 145,154 |  | (2,527) |  | 142,627
Cost of service sales |  | 55,210 |  | (757) |  | 54,453
Cost of sales |  | 200,364 |  | (3,284) |  | 197,080
Gross margin |  | 303,735 |  | 2,421 |  | 306,156
Sales, general and administrative |  | 169,427 |  | 1,537 |  | 170,964
Total operating expenses |  | 270,861 |  | 1,537 |  | 272,398
Income from operations |  | 32,874 |  | 884 |  | 33,758
Income before provision for income taxes |  | 50,590 |  |  | 884 |  |  | 51,474 |
Provision for (benefit from) income taxes |  | 9,793 |  |  | 208 |  |  | 10,001 |
Net income |  | $ | 40,797 |  |  | $ | 676 |  |  | $ | 41,473 |
Net income per common and common equivalent shares - Basic |  | $ | 0.54 |  |  | $ | 0.01 |  |  | $ | 0.55 |
Net income per common and common equivalent shares - Diluted |  | $ | 0.53 |  |  | $ | — |  |  | $ | 0.53 |
Comprehensive income |  | $ | 38,189 |  |  | $ | 676 |  |  | $ | 38,865 |
Three Months Ended December 31, 2023 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 258,405 |  | $ | (1,966) |  | $ | 256,439
Net sales from services |  | 173,737 |  | 200 |  | 173,937
Net sales |  | 432,142 |  | (1,766) |  | 430,376
Cost of product sales |  | 125,664 |  | (1,764) |  | 123,900
Cost of service sales |  | 42,591 |  | (107) |  | 42,484
Cost of sales |  | 168,255 |  | (1,871) |  | 166,384
Gross margin |  | 263,887 |  | 105 |  | 263,992
Sales, general and administrative |  | 137,106 |  | 167 |  | 137,273
Total operating expenses |  | 221,078 |  | 167 |  | 221,245
Income from operations |  | 42,809 |  | (62) |  | 42,747
Income before provision for income taxes |  | 55,802 |  |  | (62) |  |  | 55,740 |
Provision for (benefit from) income taxes |  | (1,469) |  |  | 148 |  |  | (1,321) |
Net income |  | $ | 57,271 |  |  | $ | (210) |  |  | $ | 57,061 |
Net income per common and common equivalent shares - Basic |  | $ | 0.76 |  |  | $ | — |  |  | $ | 0.76 |
Net income per common and common equivalent shares - Diluted |  | $ | 0.75 |  |  | $ | — |  |  | $ | 0.75 |
Comprehensive income |  | $ | 59,461 |  |  | $ | (210) |  |  | $ | 59,251 |
Three Months Ended September 30, 2023 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 256,443 |  | $ | (1,388) |  | $ | 255,055
Net sales from services |  | 157,158 |  | 1,065 |  | 158,223
Net sales |  | 413,601 |  | (323) |  | 413,278
Cost of product sales |  | 116,278 |  | (1,665) |  | 114,613
Cost of service sales |  | 42,051 |  | (42) |  | 42,009
Cost of sales |  | 158,329 |  | (1,707) |  | 156,622
Gross margin |  | 255,272 |  | 1,384 |  | 256,656
Sales, general and administrative |  | 123,279 |  | (922) |  | 122,357
Total operating expenses |  | 200,159 |  | (922) |  | 199,237
Income from operations |  | 55,113 |  | 2,306 |  | 57,419
Income before provision for income taxes |  | 69,423 |  |  | 2,306 |  |  | 71,729 |
Provision for (benefit from) income taxes |  | 10,026 |  |  | 394 |  |  | 10,420 |
Net income |  | $ | 59,397 |  |  | $ | 1,912 |  |  | $ | 61,309 |
Net income per common and common equivalent shares - Basic |  | $ | 0.79 |  | $ | 0.03 |  | $ | 0.82
Net income per common and common equivalent shares - Diluted |  | $ | 0.78 |  | $ | 0.03 |  | $ | 0.81
Comprehensive income |  | $ | 53,254 |  |  | $ | 1,912 |  |  | $ | 55,166 |
Three Months Ended June 30, 2023 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 233,474 |  | $ | 214 |  | $ | 233,688
Net sales from services |  | 141,131 |  | (2,115) |  | 139,016
Net sales |  | 374,605 |  | (1,901) |  | 372,704
Cost of product sales |  | 101,192 |  | (254) |  | 100,938
Cost of service sales |  | 41,292 |  | 133 |  | 41,425
Cost of sales |  | 142,484 |  | (121) |  | 142,363
Gross margin |  | 232,121 |  | (1,780) |  | 230,341
Sales, general and administrative |  | 119,922 |  | (614) |  | 119,308
Total operating expenses |  | 191,862 |  | (614) |  | 191,248
Income from operations |  | 40,259 |  | (1,166) |  | 39,093
Income (loss) before provision for income taxes |  | (12,109) |  |  | (1,166) |  |  | (13,275) |
Provision for (benefit from) income taxes |  | (24,529) |  |  | (260) |  |  | (24,789) |
Net income |  | $ | 12,420 |  |  | $ | (906) |  |  | $ | 11,514 |
Net income per common and common equivalent shares - Basic |  | $ | 0.17 |  | $ | (0.01) |  | $ | 0.16
Net income per common and common equivalent shares - Diluted |  | $ | 0.16 |  | $ | (0.01) |  | $ | 0.15
Comprehensive income |  | $ | 11,013 |  |  | $ | (906) |  |  | $ | 10,107 |
Three Months Ended March 31, 2023 |  | As Reported |  | Revision |  | As Revised
Net sales from products |  | $ | 219,389 |  | $ | (569) |  | $ | 218,820
Net sales from services |  | 123,654 |  | 1,867 |  | 125,521
Net sales |  | 343,043 |  | 1,298 |  | 344,341
Cost of product sales |  | 107,584 |  | 673 |  | 108,257
Cost of service sales |  | 31,357 |  | 263 |  | 31,620
Cost of sales |  | 138,941 |  | 936 |  | 139,877
Gross margin |  | 204,102 |  | 362 |  | 204,464
Sales, general and administrative |  | 116,567 |  | (621) |  | 115,946
Total operating expenses |  | 187,494 |  | (621) |  | 186,873
Income from operations |  | 16,608 |  | 983 |  | 17,591
Income before provision for income taxes |  | 41,884 |  |  | 983 |  |  | 42,867 |
Provision for (benefit from) income taxes |  | (3,255) |  |  | 223 |  |  | (3,032) |
Net income |  | $ | 45,139 |  |  | $ | 760 |  |  | $ | 45,899 |
Net income per common and common equivalent shares - Basic |  | $ | 0.62 |  | $ | 0.01 |  | $ | 0.63
Net income per common and common equivalent shares - Diluted |  | $ | 0.61 |  | $ | 0.01 |  | $ | 0.62
Comprehensive income |  | $ | 46,999 |  |  | $ | 760 |  |  | $ | 47,759 |

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- Definition The entire disclosure for classifying current financial statements, which may be different from classifications in the prior year's financial statements. Disclose any material changes in classification including an explanation of the reason for the change and the areas impacted. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205/tableOfContent + Details
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