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Restatement of Condensed Consolidated Financial Statements Restatement of Condensed Consolidated Financial Statements (Notes) | 3 Months Ended
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Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract] |
Accounting Changes and Error Corrections [Text Block] | RESTATEMENT OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Correction of Accounting Errors Subsequent to the filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2014 on November 5, 2014, management identified historical accounting errors relating to its accounting for certain software license, maintenance and service agreements. The prior period errors primarily relate to the Company's accounting for its bundled software multi-element arrangements. More specifically, the Company concluded it had improperly accounted for contracts containing multiple software products delivered at different points in time as separate arrangements within a contract versus as a single arrangement with multiple elements, resulting in revenue being recognized on these contracts before all licenses, for which no vendor-specific objective evidence (“VSOE”) of fair value exists, had been delivered. Furthermore, the Company concluded that its mechanisms for tracking and estimating implementation hours was not capable of producing reliable estimates in support of its assertion of VSOE for its implementation services and that its pricing for stand-alone sales of post-contract support ("PCS") was not consistent enough to support its assertion of VSOE for PCS during prior periods. Our previous accounting resulted in revenue being recognized earlier than would be appropriate for bundled software multi-element arrangements where VSOE does not exist for any of the software elements. Our current conclusions result in the deferral of revenue on such arrangements until the only undelivered element is PCS. The total arrangement revenue is then recognized ratably over the remaining initial bundled PCS period provided all other revenue recognition criteria have been met. Direct and incremental costs, including direct labor and sales commissions, related to obtaining and implementing these contracts have also been deferred until the only undelivered element is PCS and are recognized ratably over the remaining initial bundled PCS period. Due to the above errors, including the related tax impact, net income for the fiscal quarters ended September 30, 2014 and 2013 was overstated by $6,674 and $6,567, respectively. On the balance sheet, total assets as of September 30, 2014 and June 30, 2014 increased $62,743 and $56,411, respectively; total liabilities increased $140,191 and $127,185 respectively; and stockholders' equity decreased $77,448 and $70,774 respectively. The following tables present the effects of the restatement on each line of the Company's previously issued condensed consolidated financial statements as of September 30, 2014 and June 30, 2014 and for the fiscal quarters ended September 30, 2014 and 2013.
Condensed Consolidated Statements of Income: |  |  |  |  |
(In Thousands, Except Per Share Data) |  |  |  |  |
| Quarter Ended
| September 30, 2014
| As Previously Reported |  | Effect of Restatement |  | As Restated
REVENUE |  |  |  |  |
License | $ | 13,610 |  |  | $ | (13,107 | ) |  | $ | 503 |
Support and service | 292,454 |  |  | (4,238 | ) |  | 288,216 |
Hardware | 12,755 |  |  | — |  |  | 12,755 |
Total revenue | 318,819 |  |  | (17,345 | ) |  | 301,474 |
COST OF SALES |  |  |  |  |
Cost of license | 1,389 |  |  | (980 | ) |  | 409 |
Cost of support and service | 169,697 |  |  | (4,607 | ) |  | 165,090 |
Cost of hardware | 9,385 |  |  | — |  |  | 9,385 |
Total cost of sales | 180,471 |  |  | (5,587 | ) |  | 174,884 |
GROSS PROFIT | 138,348 |  |  | (11,758 | ) |  | 126,590 |
OPERATING EXPENSES |  |  |  |  |
Selling and marketing | 22,408 |  |  | (745 | ) |  | 21,663 |
Research and development | 16,791 |  |  | — |  |  | 16,791 |
General and administrative | 16,510 |  |  | — |  |  | 16,510 |
Total operating expenses | 55,709 |  |  | (745 | ) |  | 54,964 |
OPERATING INCOME | 82,639 |  |  | (11,013 | ) |  | 71,626 |
INTEREST INCOME (EXPENSE) |  |  |  |  |
Interest income | 57 |  |  | — |  |  | 57 |
Interest expense | (266 | ) |  | — |  |  | (266 | )
Total interest income (expense) | (209 | ) |  | — |  |  | (209 | )
INCOME BEFORE INCOME TAXES | 82,430 |  |  | (11,013 | ) |  | 71,417 |
PROVISION FOR INCOME TAXES | 29,668 |  |  | (4,339 | ) |  | 25,329 |
NET INCOME | $ | 52,762 |  |  | $ | (6,674 | ) |  | $ | 46,088 |
Diluted earnings per share | $ | 0.64 |  |  | $ | (0.08 | ) |  | $ | 0.56 |
Diluted weighted average shares outstanding | 82,589 |  |  | 82,589 |  |  | 82,589 |
Basic earnings per share | $ | 0.64 |  |  | $ | (0.08 | ) |  | $ | 0.56 |
Basic weighted average shares outstanding | 82,195 |  |  | 82,195 |  |  | 82,195 |
Condensed Consolidated Statements of Income: |  |  |  |  |
(In Thousands, Except Per Share Data) |  |  |  |  |
| Quarter Ended
| September 30, 2013
| As Previously Reported |  | Effect of Restatement |  | As Restated
REVENUE |  |  |  |  |
License | $ | 11,779 |  |  | $ | (11,017 | ) |  | $ | 762 |
Support and service | 269,544 |  |  | (6,914 | ) |  | 262,630 |
Hardware | 14,338 |  |  | — |  |  | 14,338 |
Total revenue | 295,661 |  |  | (17,931 | ) |  | 277,730 |
COST OF SALES |  |  |  |  |
Cost of license | 1,412 |  |  | (1,068 | ) |  | 344 |
Cost of support and service | 154,583 |  |  | (5,427 | ) |  | 149,156 |
Cost of hardware | 10,941 |  |  | — |  |  | 10,941 |
Total cost of sales | 166,936 |  |  | (6,495 | ) |  | 160,441 |
GROSS PROFIT | 128,725 |  |  | (11,436 | ) |  | 117,289 |
OPERATING EXPENSES |  |  |  |  |
Selling and marketing | 21,458 |  |  | (720 | ) |  | 20,738 |
Research and development | 15,673 |  |  | — |  |  | 15,673 |
General and administrative | 14,250 |  |  | — |  |  | 14,250 |
Total operating expenses | 51,381 |  |  | (720 | ) |  | 50,661 |
OPERATING INCOME | 77,344 |  |  | (10,716 | ) |  | 66,628 |
INTEREST INCOME (EXPENSE) |  |  |  |  |
Interest income | 131 |  |  | — |  |  | 131 |
Interest expense | (280 | ) |  | — |  |  | (280 | )
Total interest income (expense) | (149 | ) |  | — |  |  | (149 | )
INCOME BEFORE INCOME TAXES | 77,195 |  |  | (10,716 | ) |  | 66,479 |
PROVISION FOR INCOME TAXES | 27,407 |  |  | (4,149 | ) |  | 23,258 |
NET INCOME | $ | 49,788 |  |  | $ | (6,567 | ) |  | $ | 43,221 |
Diluted earnings per share | $ | 0.58 |  |  | $ | (0.08 | ) |  | $ | 0.50 |
Diluted weighted average shares outstanding | 85,854 |  |  | 85,854 |  |  | 85,854 |
Basic earnings per share | $ | 0.58 |  |  | $ | (0.08 | ) |  | $ | 0.51 |
Basic weighted average shares outstanding | 85,294 |  |  | 85,294 |  |  | 85,294 |
Condensed Consolidated Balance Sheets: |  |  |  |  |
(In Thousands, Except Share and Per Share Data) |  |  |  |  |
| September 30, 2014
| As Previously Reported |  | Effect of Restatement |  | As Restated
ASSETS |  |  |  |  |
CURRENT ASSETS: |  |  |  |  |
Cash and cash equivalents | $ | 39,402 |  |  | $ | — |  |  | $ | 39,402 |
Receivables, net | 159,110 |  |  | — |  |  | 159,110 |
Income tax receivable | 2,618 |  |  | — |  |  | 2,618 |
Prepaid expenses and other | 72,340 |  |  | 1,588 |  |  | 73,928 |
Deferred costs | 28,649 |  |  | 6,616 |  |  | 35,265 |
Total current assets | 302,119 |  |  | 8,204 |  |  | 310,323 |
PROPERTY AND EQUIPMENT, net | 301,132 |  |  | — |  |  | 301,132 |
OTHER ASSETS: |  |  |  |  |
Non-current deferred costs | 36,370 |  |  | 47,595 |  |  | 83,965 |
Computer software, net of amortization | 167,585 |  |  | — |  |  | 167,585 |
Other non-current assets | 37,389 |  |  | 6,944 |  |  | 44,333 |
Customer relationships, net of amortization | 132,893 |  |  | — |  |  | 132,893 |
Other intangible assets, net of amortization | 27,805 |  |  | — |  |  | 27,805 |
Goodwill | 552,761 |  |  | — |  |  | 552,761 |
Total other assets | 954,803 |  |  | 54,539 |  |  | 1,009,342 |
Total assets | $ | 1,558,054 |  |  | $ | 62,743 |  |  | $ | 1,620,797 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |
CURRENT LIABILITIES: |  |  |  |  |
Accounts payable | $ | 8,316 |  |  | $ | — |  |  | $ | 8,316 |
Accrued expenses | 58,038 |  |  | — |  |  | 58,038 |
Deferred income tax liability | 37,592 |  |  | (16,152 | ) |  | 21,440 |
Accrued income taxes | 14,690 |  |  | — |  |  | 14,690 |
Notes payable and current maturities of long term debt | 9,964 |  |  | — |  |  | 9,964 |
Deferred revenues | 260,552 |  |  | 31,724 |  |  | 292,276 |
Total current liabilities | 389,152 |  |  | 15,572 |  |  | 404,724 |
LONG TERM LIABILITIES: |  |  |  |  |
Non-current deferred revenues | 9,017 |  |  | 157,502 |  |  | 166,519 |
Non-current deferred income tax liability | 136,576 |  |  | (32,883 | ) |  | 103,693 |
Debt, net of current maturities | 1,041 |  |  | — |  |  | 1,041 |
Other long-term liabilities | 10,349 |  |  | — |  |  | 10,349 |
Total long term liabilities | 156,983 |  |  | 124,619 |  |  | 281,602 |
Total liabilities | 546,135 |  |  | 140,191 |  |  | 686,326 |
STOCKHOLDERS' EQUITY |  |  |  |  |
Preferred stock - $1 par value; 500,000 shares authorized, none issued | — |  |  | — |  |  | — |
Common stock - $0.01 par value; 250,000,000 shares authorized; 102,611,471 shares issued at September 30, 2014 | 1,026 |  |  | — |  |  | 1,026 |
Additional paid-in capital | 412,092 |  |  | — |  |  | 412,092 |
Retained earnings | 1,237,126 |  |  | (77,448 | ) |  | 1,159,678 |
Less treasury stock at cost 20,843,232 shares at September 30, 2014 | (638,325 | ) |  | — |  |  | (638,325 | )
Total stockholders' equity | 1,011,919 |  |  | (77,448 | ) |  | 934,471 |
Total liabilities and equity | $ | 1,558,054 |  |  | $ | 62,743 |  |  | $ | 1,620,797 |
Condensed Consolidated Balance Sheets: |  |  |  |  |
(In Thousands, Except Share and Per Share Data) |  |  |  |  |
| June 30, 2014
| As Previously Reported |  | Effect of Restatement |  | As Restated
ASSETS |  |  |  |  |
CURRENT ASSETS: |  |  |  |  |
Cash and cash equivalents | $ | 70,377 |  |  | $ | — |  |  | $ | 70,377 |
Receivables, net | 224,041 |  |  | — |  |  | 224,041 |
Income tax receivable | 7,937 |  |  | — |  |  | 7,937 |
Prepaid expenses and other | 59,824 |  |  | 1,250 |  |  | 61,074 |
Deferred costs | 22,202 |  |  | 4,875 |  |  | 27,077 |
Total current assets | 384,381 |  |  | 6,125 |  |  | 390,506 |
PROPERTY AND EQUIPMENT, net | 291,675 |  |  | — |  |  | 291,675 |
OTHER ASSETS: |  |  |  |  |
Non-current deferred costs | 34,708 |  |  | 43,750 |  |  | 78,458 |
Computer software, net of amortization | 160,391 |  |  | — |  |  | 160,391 |
Other non-current assets | 38,121 |  |  | 6,536 |  |  | 44,657 |
Customer relationships, net of amortization | 136,602 |  |  | — |  |  | 136,602 |
Other intangible assets, net of amortization | 25,653 |  |  | — |  |  | 25,653 |
Goodwill | 552,761 |  |  | — |  |  | 552,761 |
Total other assets | 948,236 |  |  | 50,286 |  |  | 998,522 |
Total assets | $ | 1,624,292 |  |  | $ | 56,411 |  |  | $ | 1,680,703 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |
CURRENT LIABILITIES: |  |  |  |  |
Accounts payable | $ | 10,516 |  |  | $ | — |  |  | $ | 10,516 |
Accrued expenses | 63,299 |  |  | — |  |  | 63,299 |
Deferred income tax liability | 37,592 |  |  | (7,498 | ) |  | 30,094 |
Notes payable and current maturities of long term debt | 5,407 |  |  | — |  |  | 5,407 |
Deferred revenues | 312,002 |  |  | 25,491 |  |  | 337,493 |
Total current liabilities | 428,816 |  |  | 17,993 |  |  | 446,809 |
LONG TERM LIABILITIES: |  |  |  |  |
Non-current deferred revenues | 8,985 |  |  | 146,390 |  |  | 155,375 |
Non-current deferred income tax liability | 134,918 |  |  | (37,198 | ) |  | 97,720 |
Debt, net of current maturities | 3,729 |  |  | — |  |  | 3,729 |
Other long-term liabilities | 9,683 |  |  | — |  |  | 9,683 |
Total long term liabilities | 157,315 |  |  | 109,192 |  |  | 266,507 |
Total liabilities | 586,131 |  |  | 127,185 |  |  | 713,316 |
STOCKHOLDERS' EQUITY |  |  |  |  |  |  |
Preferred stock - $1 par value; 500,000 shares authorized, none issued | — |  |  | — |  |  | — |
Common stock - $0.01 par value; 250,000,000 shares authorized; 102,429,926 shares issued at June 30, 2014 | 1,024 |  |  | — |  |  | 1,024 |
Additional paid-in capital | 412,512 |  |  | — |  |  | 412,512 |
Retained earnings | 1,202,406 |  |  | (70,774 | ) |  | 1,131,632 |
Less treasury stock at cost 19,794,559 shares at June 30, 2014 | (577,781 | ) |  | — |  |  | (577,781 | )
Total stockholders' equity | 1,038,161 |  |  | (70,774 | ) |  | 967,387 |
Total liabilities and equity | $ | 1,624,292 |  |  | $ | 56,411 |  |  | $ | 1,680,703 |
Condensed Consolidated Statements of Cash Flows: |  |  |  |  |
(In Thousands) |  |  |  |  |
| Quarter Ended
| September 30, 2014
| As Previously Reported |  | Effect of Restatement |  | As Restated
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
Net Income | $ | 52,762 |  |  | $ | (6,674 | ) |  | $ | 46,088 |
Adjustments to reconcile net income from operations to net cash from operating activities: |  |  |  |  |
Depreciation | 13,631 |  |  | — |  |  | 13,631 |
Amortization | 15,817 |  |  | — |  |  | 15,817 |
Change in deferred income taxes | 1,658 |  |  | (4,340 | ) |  | (2,682 | )
Excess tax benefits from stock-based compensation | (3,801 | ) |  | — |  |  | (3,801 | )
Expense for stock-based compensation | 2,068 |  |  | — |  |  | 2,068 |
(Gain)/loss on disposal of assets | (56 | ) |  | — |  |  | (56 | )
Changes in operating assets and liabilities: |  |  |  |  |
Change in receivables | 64,931 |  |  | — |  |  | 64,931 |
Change in prepaid expenses, deferred costs and other | (19,893 | ) |  | (6,332 | ) |  | (26,225 | )
Change in accounts payable | (2,200 | ) |  | — |  |  | (2,200 | )
Change in accrued expenses | (4,680 | ) |  | — |  |  | (4,680 | )
Change in income taxes | 24,329 |  |  | — |  |  | 24,329 |
Change in deferred revenues | (51,418 | ) |  | 17,346 |  |  | (34,072 | )
Net cash from operating activities | 93,148 |  |  | — |  |  | 93,148 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
Capital expenditures | (21,485 | ) |  | — |  |  | (21,485 | )
Proceeds from sale of assets | 58 |  |  | — |  |  | 58 |
Internal use software | (3,455 | ) |  | — |  |  | (3,455 | )
Computer software developed | (17,999 | ) |  | — |  |  | (17,999 | )
Net cash from investing activities | (42,881 | ) |  | — |  |  | (42,881 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
Repayments on credit facilities | (170 | ) |  | — |  |  | (170 | )
Purchase of treasury stock | (60,544 | ) |  | — |  |  | (60,544 | )
Dividends paid | (18,042 | ) |  | — |  |  | (18,042 | )
Excess tax benefits from stock-based compensation | 3,801 |  |  | — |  |  | 3,801 |
Proceeds from issuance of common stock upon exercise of stock options | 161 |  |  | — |  |  | 161 |
Minimum tax withholding payments related to share based compensation | (7,602 | ) |  | — |  |  | (7,602 | )
Proceeds from sale of common stock, net | 1,154 |  |  | — |  |  | 1,154 |
Net cash from financing activities | (81,242 | ) |  | — |  |  | (81,242 | )
NET CHANGE IN CASH AND CASH EQUIVALENTS | $ | (30,975 | ) |  | $ | — |  |  | $ | (30,975 | )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 70,377 |  |  | — |  |  | 70,377 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 39,402 |  |  | $ | — |  |  | $ | 39,402 |
Condensed Consolidated Statements of Cash Flows: |  |  |  |  |
(In Thousands) |  |  |  |  |
| Quarter Ended
| September 30, 2013
| As Previously Reported |  | Effect of Restatement |  | As Restated
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |
Net Income | $ | 49,788 |  |  | $ | (6,567 | ) |  | $ | 43,221 |
Adjustments to reconcile net income from operations to net cash from operating activities: |  |  |  |  |
Depreciation | 12,963 |  |  | — |  |  | 12,963 |
Amortization | 12,893 |  |  | — |  |  | 12,893 |
Change in deferred income taxes | 1,862 |  |  | (4,149 | ) |  | (2,287 | )
Excess tax benefits from stock-based compensation | (2,947 | ) |  | — |  |  | (2,947 | )
Expense for stock-based compensation | 1,922 |  |  | — |  |  | 1,922 |
(Gain)/loss on disposal of assets | (30 | ) |  | — |  |  | (30 | )
Changes in operating assets and liabilities: |  |  |  |  |
Change in receivables | 78,489 |  |  | — |  |  | 78,489 |
Change in prepaid expenses, deferred costs and other | (12,591 | ) |  | (7,215 | ) |  | (19,806 | )
Change in accounts payable | 2,213 |  |  | — |  |  | 2,213 |
Change in accrued expenses | (16,238 | ) |  | — |  |  | (16,238 | )
Change in income taxes | 21,531 |  |  | — |  |  | 21,531 |
Change in deferred revenues | (52,165 | ) |  | 17,931 |  |  | (34,234 | )
Net cash from operating activities | 97,690 |  |  | — |  |  | 97,690 |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |
Capital expenditures | (7,351 | ) |  | — |  |  | (7,351 | )
Proceeds from sale of assets | 2,702 |  |  | — |  |  | 2,702 |
Internal use software | (3,183 | ) |  | — |  |  | (3,183 | )
Computer software developed | (14,076 | ) |  | — |  |  | (14,076 | )
Net cash from investing activities | (21,908 | ) |  | — |  |  | (21,908 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |
Repayments on credit facilities | (2,798 | ) |  | — |  |  | (2,798 | )
Purchase of treasury stock | — |  |  | — |  |  | — |
Dividends paid | (17,054 | ) |  | — |  |  | (17,054 | )
Excess tax benefits from stock-based compensation | 2,947 |  |  | — |  |  | 2,947 |
Proceeds from issuance of common stock upon exercise of stock options | 111 |  |  | — |  |  | 111 |
Minimum tax withholding payments related to share based compensation | (6,176 | ) |  | — |  |  | (6,176 | )
Proceeds from sale of common stock, net | 1,070 |  |  | — |  |  | 1,070 |
Net cash from financing activities | (21,900 | ) |  | — |  |  | (21,900 | )
NET CHANGE IN CASH AND CASH EQUIVALENTS | $ | 53,882 |  |  | $ | — |  |  | $ | 53,882 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $ | 127,905 |  |  | $ | — |  |  | $ | 127,905 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 181,787 |  |  | $ | — |  |  | $ | 181,787 |
Prior Period Reclassification Certain amounts included within the condensed consolidated statements of cash flows for the three months ended September 30, 2013 have been restated to correct an error related to the presentation of excess tax benefits from stock based compensation within cash flows from operating activities. Such correction adjusted the cash flow statement for the three months ended September 30, 2013 by presenting excess tax benefits from stock based compensation as a separate line item and increasing the change in income taxes by $2,947. There was no change in total cash flows from operating, investing or financing activities.

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22595-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22499-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
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