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Note 3 - Adoption of New Revenue Recognition Standard | 3 Months Ended
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Mar. 31, 2018
Notes to Financial Statements |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] |
3. | ADOPTION OF NEW REVENUE RECOGNITION STANDARD
The Company adopted ASC 606 on January 1, 2018, using the full retrospective method, resulting in a recasting of prior period consolidated financial statements. The impact of the ASC 606 adoption on the 2017 condensed consolidated financial statements was as follows (in thousands, except per share data):
Condensed Consolidated Balance Sheet Information |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2017 |
|  | As Reported |  |  | ASC 606 Adjustment |  |  | As Re casted |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Current Assets: |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, net |  | $ | 51,141 |  |  | $ | (21,211 | ) |  | $ | 29,930 |
Prepaid and other current assets |  |  | 8,160 |  |  |  | 2,738 |  |  |  | 10,898 |
Total Current Assets |  |  | 242,384 |  |  |  | (18,473 | ) |  |  | 223,911 |
Other assets |  |  | 6,179 |  |  |  | 4,776 |  |  |  | 10,955 |
Total Assets |  | $ | 2,218,329 |  |  | $ | (13,697 | ) |  | $ | 2,204,632 |
Liabilities and Stockholders' Equity |  |  |  |  |  |  |  |  |  |  |  |
Current Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 117,963 |  |  | $ | (108 | ) |  | $ | 117,855 |
Deferred revenue |  |  | 38,266 |  |  |  | (23,258 | ) |  |  | 15,008 |
Total Current Liabilities |  |  | 170,604 |  |  |  | (23,366 | ) |  |  | 147,238 |
Deferred income taxes |  |  | 205,636 |  |  |  | 1,518 |  |  |  | 207,154 |
Other liabilities |  |  | 9,991 |  |  |  | 3,120 |  |  |  | 13,111 |
Total Liabilities |  |  | 1,546,913 |  |  |  | (18,728 | ) |  |  | 1,528,185 |
Stockholders' Equity |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings |  |  | 723,354 |  |  |  | 5,032 |  |  |  | 728,386 |
Total Stockholders' Equity |  |  | 671,416 |  |  |  | 5,031 |  |  |  | 676,447 |
Total Liabilities and Stockholders' Equity |  | $ | 2,218,329 |  |  | $ | (13,697 | ) |  | $ | 2,204,632 |
|  | Three Months Ended March 31, 2017 |
|  | As Reported/ Re vised (1) |  |  | ASC 606 Adjustment |  |  | As Re casted |
Condensed Consolidated Statement of Operations and Comprehensive Income Information |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 207,427 |  |  | $ | 7 |  |  | $ | 207,434 |
Costs and expenses |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | 46,256 |  |  |  | 129 |  |  |  | 46,385 |
Total costs and expenses |  |  | 148,729 |  |  |  | 129 |  |  |  | 148,858 |
Income from operations |  |  | 58,698 |  |  |  | (122 | ) |  |  | 58,576 |
Income before income taxes |  |  | 51,379 |  |  |  | (122 | ) |  |  | 51,257 |
Income tax provision |  |  | 19,190 |  |  |  | (46 | ) |  |  | 19,144 |
Net income |  | $ | 32,189 |  |  | $ | (76 | ) |  | $ | 32,113 |
Net income per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 5.68 |  |  | $ | (0.02 | ) |  | $ | 5.66 |
Diluted |  | $ | 5.62 |  |  | $ | (0.02 | ) |  | $ | 5.60 |
Comprehensive income |  | $ | 32,191 |  |  | $ | (76 | ) |  | $ | 32,115 |
Condensed Consolidated Statement of Cash Flows Information |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 32,189 |  |  | $ | (76 | ) |  | $ | 32,113 |
Change in deferred income taxes |  |  | (157 | ) |  |  | (46 | ) |  |  | (203 | )
Deferred revenue |  |  | 425 |  |  |  | 102 |  |  |  | 527 |
Other assets and liabilities, net |  |  | (415 | ) |  |  | 20 |  |  |  | (395 | )
Net cash provided by operating activities |  | $ | 78,260 |  |  | $ | - |  |  | $ | 78,260 |
( 1 ) Refer to note 2 for details regarding this revision.
The adoption of ASC 606 did not result in any changes to previously reported total cash flows from operations, financing or investing activities. A summary of changes in timing and presentation to historical financials is presented below:
| • | The decrease to total assets reflects a decrease in accounts receivable to remove amounts billed to customers for which the performance obligation has not been satisfied partially offset by the deferral of incremental costs (commissions paid) to obtain a contract which had been historically expensed immediately.
| • | The net decrease in total liabilities reflects a decrease in deferred revenue to remove amounts billed to customers for which the performance obligation has not been satisified partially offset by the recognition of deferred revenue related to certain up-front fees collected from our business services customers which had been historically recognized when billed in addition to the tax effect of establishing deferred commissions and deferred revenue.
| • | The change in revenues and expenses is due to the deferral of all business installation revenues and certain upfront fees and all residential and business commission expenses over a period of time, instead of immediate recognition.

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- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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