REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Assets and Liabilities Associated with Contracts from Customers

The following table provides information about assets and liabilities associated with our contracts from customers (in thousands):

	As of March 31, 2018
Accounts receivable	$	22,768
Short-term unbilled receivables		407
Long-term unbilled receivables		1,272
Short-term deferred revenue		59,736
Long-term deferred revenue		19,500

Summary of Significant Changes in Unbilled Receivables and Deferred Liabilities Balances

Significant changes in the unbilled receivables and deferred liabilities balances during the period are as follows (in thousands):

	Three Months Ended March 31, 2018
	Unbilled Receivables Increase (Decrease)		Deferred Revenue (Increase) Decrease
Balance at December 31, 2017	$	70	$	(38,883	)
Adoption of revenue standard on January 1, 2018		307		(21,307	)
Adjusted balance on January 1, 2018		377		(60,190	)
Revenue recognized that was previously included in deferred revenue	—			6,490
Increases due to cash received	—			(30,331	)
Cumulative catch-up adjustment arising from changes in estimates of transaction price	—			4,795
Unbilled receivables recognized		1,302	—
Transferred to receivables from unbilled receivables	—		—
Net change		1,302		(19,046	)
Balance at March 31, 2018	$	1,679	$	(79,236	)

Revenue from Contracts with Customers - ASU No. 2014-09 [Member]

Summary of Impacts of Adopting Topic 606 on Consolidated Financial Statements

The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018.

i. Consolidated balance sheet	Impact of changes in accounting policies
March 31, 2018 (in thousands)	As reported		Adjustment			Balances without adoption of Topic 606
ASSETS
Other assets (current and non-current)	$	16,692	$	(1,401	)	$	15,291
Deferred income taxes		29,944		(7,790	)		22,154
TOTAL ASSETS		795,140		(9,191	)		785,949

LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue (current and non-current)		79,236		(47,054	)		32,182
Retained earnings		84,360		37,863			122,223
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		795,140		(9,191	)		785,949

ii. Consolidated statements of income	Impact of changes in accounting policies
For the three-months ended March 31, 2018 (in thousands)	As reported		Adjustment			Balances without adoption of Topic 606
REVENUE	$	43,572	$	24,653		$	68,225
GROSS MARGIN		36,114		24,653			60,767
OPERATING INCOME		4,519		24,653			29,172
INCOME BEFORE INCOME TAXES		5,743		24,653			30,396
INCOME TAX BENEFIT (EXPENSE)		216		(4,684	)		(4,468	)
NET INCOME		5,959		19,969			25,928

iii. Consolidated statements of cash flows	Impact of changes in accounting policies
For the three-months ended March 31, 2018 (in thousands)	As reported			Adjustment			Balances without adoption of Topic 606
Net income	$	5,959		$	19,969		$	25,928
Amortization of deferred revenue		(12,589	)		(29,160	)		(41,749	)
Deferred income tax expense		72			7,790			7,862
Other assets (current and non-current)		(4,202	)		1,401			(2,801	)
CASH FLOW FROM OPERATING ACTIVITIES		38,815			-			38,815