XML 23 R8.htm IDEA: XBRL DOCUMENT
v3.10.0.1

TOPIC 606 ADOPTION IMPACT AND REVENUE FROM CONTRACTS WITH CUSTOMERS: (Notes) | 9 Months Ended
--- | ---
Dec. 31, 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 December 31, 2018, the remaining unamortized contract costs were $9.5 million and are included in deferred commissions, net, in the condensed consolidated balance sheet. Net capitalized costs of $3.0 million were recorded as a reduction to operating expense for the nine months ended December 31, 2018. No impairment was recognized for the nine months ended December 31, 2018. Impacts on Financial Statements
Condensed Consolidated Balance Sheet |  | Impact of changes in accounting policies |  |  |  |
|  | As reported December 31, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Deferred income taxes |  | 149 |  | 2,256 |  | 2,405
Deferred commissions, net |  | 9,478 |  | (9,478) |  | —
Others |  | 1,917,891 |  | — |  | 1,917,891
Total assets |  | $ | 1,927,518 |  | $ | (7,222) |  | $ | 1,920,296
Total liabilities |  | 567,902 |  | — |  | 567,902
Retained earnings |  | 1,715,066 |  | (7,222) |  | 1,707,844
Other equity |  | (355,450) |  | — |  | (355,450)
Total equity |  | 1,359,616 |  | (7,222) |  | 1,352,394
Total liabilities and equity |  | $ | 1,927,518 |  | $ | (7,222) |  | $ | 1,920,296
Condensed Consolidated Statement of Operations |  | Impact of changes in accounting policies |  |  |  |
|  | As reported for the nine months ended December 31, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Revenues |  | $ | 207,304 |  | $ | — |  | $ | 207,304
Cost of revenue |  | 82,958 |  | — |  | 82,958
Gross profit |  | $ | 124,346 |  | $ | — |  | $ | 124,346
Operating expenses: |  |  |  |  |  |
Sales and marketing |  | $ | 109,317 |  | $ | 3,035 |  | $ | 112,352
Other operating expenses |  | 131,041 |  | — |  | 131,041
Total operating expenses |  | 240,358 |  | 3,035 |  | 243,393
Loss from operations |  | (116,012) |  | (3,035) |  | (119,047)
Total other income |  | 10,479 |  | — |  | 10,479
Loss from continuing operations before income taxes |  | (105,533) |  | (3,035) |  | (108,568)
Income taxes (benefit) |  | (21,274) |  | (722) |  | (21,996)
Net loss from continuing operations |  | $ | (84,259) |  | $ | (2,313) |  | $ | (86,572)
Condensed Consolidated Statement of Comprehensive Income |  | Impact of changes in accounting policies |  |  |  |
|  | As reported for the nine months ended December 31, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Net earnings |  | $ | 1,074,008 |  | $ | (2,313) |  | $ | 1,071,695
Other comprehensive loss: |  |  |  |  |  |
Change in foreign currency translation adjustment |  | (2,876) |  | — |  | (2,876)
Comprehensive income |  | $ | 1,071,132 |  | $ | (2,313) |  | $ | 1,068,819
Condensed Consolidated Statement of Cash Flows |  | Impact of changes in accounting policies |  |  |  |
|  | As reported for the nine months ended December 31, 2018 |  | Adjustments |  | Balances without adoption of Topic 606
Net earnings |  | $ | 1,074,008 |  | $ | (2,313) |  | $ | 1,071,695
Earnings from discontinued operations |  | (1,158,267) |  | — |  | (1,158,267)
Adjustments for: |  |  |  |  |  |
Deferred income taxes |  | 20,723 |  | (722) |  | 20,001
Others |  | 91,425 |  | — |  | 91,425
Changes in: |  |  |  |  |  |
Accounts receivable, net |  | (35,011) |  | — |  | (35,011)
Deferred commissions |  | (3,035) |  | 3,035 |  | —
Other assets |  | 654 |  | — |  | 654
Accounts payable and other liabilities |  | (29,274) |  | — |  | (29,274)
Deferred revenue |  | (1,555) |  | — |  | (1,555)
Net cash from operating activities |  | (40,332) |  | — |  | (40,332)
Net cash from investing activities |  | (7,795) |  | — |  | (7,795)
Net cash from financing activities |  | (820,644) |  | — |  | (820,644)
Net cash from discontinued operations |  | 2,277,338 |  | — |  | 2,277,338
Effect of exchange rate changes on cash |  | (1,811) |  | — |  | (1,811)
Net change in cash and cash equivalents |  | 1,406,756 |  | — |  | 1,406,756
Cash and cash equivalents at beginning of period |  | 140,018 |  | — |  | 140,018
Cash and cash equivalents at end of period |  | $ | 1,546,774 |  | $ | — |  | $ | 1,546,774
Disaggregation of Revenue In the following table, revenue is disaggregated by primary geographical market and major service offerings (dollars in thousands).
|  | For the nine months ended |  |
|  | December 31, |  |
Primary Geographical Markets |  | 2018 |  | 2017
United States |  | $ | 189,997 |  | $ | 143,937
Europe |  | 13,858 |  | 12,916
APAC |  | 3,449 |  | 3,038
|  | $ | 207,304 |  | $ | 159,891
Major Offerings/Services |  |  |  |
Subscription |  | 171,184 |  | 125,157
Marketplace and Other |  | 36,120 |  | 34,734
|  | $ | 207,304 |  | $ | 159,891
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 $335.1 million as of December 31, 2018. The Company expects to recognize revenue on substantially all of these remaining performance obligations by March 31, 2021 with the balance recognized thereafter.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration