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TOPIC 606 ADOPTION IMPACT AND REVENUE FROM CONTRACTS WITH CUSTOMERS: (Notes) | 6 Months Ended
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Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
Topic 606 Adoption Impact and Revenue from Contracts with Customers | TOPIC 606 ADOPTION IMPACT AND REVENUE FROM CONTRACTS WITH CUSTOMERS: On April 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of April 1, 2018. Results for reporting periods beginning after April 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic reporting under Topic 605. Under Topic 606, revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation We recorded a net increase to our opening retained earnings of $12.7 million, net of tax, due to the cumulative impact of adopting Topic 606, with the impact primarily related to the capitalization of costs of obtaining customer contracts. The details of the significant changes and quantitative impact of the changes are disclosed below. Costs of Obtaining Customer Contracts The Company previously recognized commission payments made for obtaining a contract as an operating expense when incurred. Under Topic 606, the Company capitalizes incremental costs to acquire contracts and amortizes them over the expected period of benefit, which we have determined to be four years. As of September 30, 2018, the remaining unamortized contract costs were $8.5 million and are included in deferred commissions, net, in the condensed consolidated balance sheet. Net capitalized costs of $2.0 million were recorded as a reduction to operating expense for the six months ended September 30, 2018. No impairment was recognized for the six months ended September 30, 2018. Impacts on Financial Statements
Condensed Consolidated Balance Sheet |  | Impact of changes in accounting policies |  |  |  |
|  | As reported September 30, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Deferred commissions, net |  | 8,490 |  | (8,490) |  | —
Others |  | 1,179,302 |  | — |  | 1,179,302
Total assets |  | $ | 1,187,792 |  | $ | (8,490) |  | $ | 1,179,302
Deferred income taxes |  | 15,952 |  | (2,281) |  | 13,671
Others |  | 411,162 |  | — |  | 411,162
Total liabilities |  | 427,114 |  | (2,281) |  | 424,833
Retained earnings |  | 658,666 |  | (6,209) |  | 652,457
Other equity |  | 102,012 |  | — |  | 102,012
Total equity |  | 760,678 |  | (6,209) |  | 754,469
Total liabilities and equity |  | $ | 1,187,792 |  | $ | (8,490) |  | $ | 1,179,302
Condensed Consolidated Statement of Operations |  | Impact of changes in accounting policies |  |  |  |
|  | As reported for the six months ended September 30, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Revenues |  | $ | 127,283 |  | $ | — |  | $ | 127,283
Cost of revenue |  | 48,120 |  | — |  | 48,120
Gross profit |  | $ | 79,163 |  | $ | — |  | $ | 79,163
Operating expenses: |  |  |  |  |  |
Sales and marketing |  | $ | 69,263 |  | $ | 2,047 |  | $ | 71,310
Other operating expenses |  | 77,701 |  | — |  | 77,701
Total operating expenses |  | 146,964 |  | 2,047 |  | 149,011
Loss from operations |  | (67,801) |  | (2,047) |  | (69,848)
Total other income |  | 75 |  | — |  | 75
Loss from continuing operations before income taxes |  | (67,726) |  | (2,047) |  | (69,773)
Income taxes (benefit) |  | 1,272 |  | (487) |  | 785
Net loss from continuing operations |  | $ | (68,998) |  | $ | (1,560) |  | $ | (70,558)
Condensed Consolidated Statement of Comprehensive Income |  | Impact of changes in accounting policies |  |  |  |
|  | As reported for the six months ended September 30, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Net earnings |  | $ | 17,608 |  | $ | (1,560) |  | $ | 16,048
Other comprehensive loss: |  |  |  |  |  |
Change in foreign currency translation adjustment |  | (575) |  | — |  | (575)
Comprehensive income |  | $ | 17,033 |  | $ | (1,560) |  | $ | 15,473
Condensed Consolidated Statement of Cash Flows |  | Impact of changes in accounting policies |  |  |  |
|  | As reported for the six months ended September 30, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Net earnings |  | $ | 17,608 |  | $ | (1,560) |  | $ | 16,048
Earnings from discontinued operations |  | (86,606) |  | — |  | (86,606)
Adjustments for: |  |  |  |  |  |
Deferred income taxes |  | 12,444 |  | (487) |  | 11,957
Others |  | 53,111 |  | — |  | 53,111
Changes in: |  |  |  |  |  |
Accounts receivable, net |  | (2,649) |  | — |  | (2,649)
Deferred commissions |  | (2,047) |  | 2,047 |  | —
Other assets |  | (12,480) |  | — |  | (12,480)
Accounts payable and other liabilities |  | (7,276) |  | — |  | (7,276)
Deferred revenue |  | (1,515) |  | — |  | (1,515)
Net cash from operating activities |  | (29,410) |  | — |  | (29,410)
Net cash from investing activities |  | (5,857) |  | — |  | (5,857)
Net cash from financing activities |  | (55,862) |  | — |  | (55,862)
Net cash from discontinued operations |  | 39,642 |  | — |  | 39,642
Effect of exchange rate changes on cash |  | (1,484) |  | — |  | (1,484)
Net change in cash and cash equivalents |  | (52,971) |  | — |  | (52,971)
Cash and cash equivalents at beginning of period |  | 140,018 |  | — |  | 140,018
Cash and cash equivalents at end of period |  | $ | 87,047 |  | $ | — |  | $ | 87,047
Disaggregation of Revenue In the following table, revenue is disaggregated by primary geographical market and major service offerings (dollars in thousands).
|  | For the six months ended |  |
|  | September 30, |  |
Primary Geographical Markets |  | 2018 |  | 2017
United States |  | $ | 116,195 |  | $ | 91,271
Europe |  | 8,710 |  | 7,830
APAC |  | 2,378 |  | 1,669
|  | $ | 127,283 |  | $ | 100,770
Major Offerings/Services |  |  |  |
Subscription |  | 106,190 |  | 79,369
Marketplace and Other |  | 21,093 |  | 21,401
|  | $ | 127,283 |  | $ | 100,770
Transaction Price Allocated to the Remaining Performance Obligations We have performance obligations associated with fixed commitments in customer contracts for future services that have not yet been recognized in our condensed consolidated financial statements. The amount of fixed revenue not yet recognized was $168.0 million as of September 30, 2018. The Company expects to recognize revenue on substantially all of these remaining performance obligations by March 31, 2021 with the balance recognized thereafter.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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