3.	ADOPTION OF NEW REVENUE RECOGNITION STANDARD

The Company adopted ASC

606

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

(

)

Refer to note

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.