REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 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  June 30, 2018
Accounts receivable	$	35,583
Short-term unbilled receivables		1,047
Long-term unbilled receivables		1,571
Short-term deferred revenue		69,247
Long-term deferred revenue		28,344

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):

	Six Months Ended June 30, 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	—			22,669
Increases due to cash received	—			(64,423	)
Cumulative catch-up adjustment arising from changes in estimates of    transaction price	—			4,353
Unbilled receivables recognized		2,241	—
Transferred to receivables from unbilled receivables	—		—
Net change		2,241		(37,401	)
Balance at June 30, 2018	$	2,618	$	(97,591	)

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 and six months ended June 30, 2018.

i. Consolidated Balance Sheet (in thousands)

	Impact of changes in accounting policies
June 30, 2018	As reported		Adjustment			Balances without adoption of Topic 606
ASSETS
Other assets (current and non-current)	$	60,395	$	(2,246	)	$	58,149
Deferred income taxes		10,534		(10,970	)		(436	)
TOTAL ASSETS		833,249		(13,216	)		820,033
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred revenue (current and non-current)		97,591		(65,368	)		32,223
Retained earnings		92,346		52,152			144,498
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		833,249		(13,216	)		820,033

ii. Consolidated Statements of Income (in thousands)

	Impact of changes in accounting policies
Three Months Ended June 30, 2018	As reported			Adjustment			Balances without adoption of Topic 606
REVENUE	$	56,149		$	17,470		$	73,619
Gross margin		44,514			17,470			61,984
OPERATING INCOME		10,911			17,470			28,381
INCOME BEFORE INCOME TAXES		12,665			17,470			30,135
INCOME TAX EXPENSE		(1,851	)		(3,180	)		(5,031	)
NET INCOME		10,814			14,290			25,104

	Impact of changes in accounting policies
Six Months Ended June 30, 2018	As reported			Adjustment			Balances without adoption of Topic 606
REVENUE	$	99,721		$	42,123		$	141,844
Gross margin		80,628			42,123			122,751
OPERATING INCOME		15,430			42,123			57,553
INCOME BEFORE INCOME TAXES		18,408			42,123			60,531
INCOME TAX EXPENSE		(1,635	)		(7,864	)		(9,499	)
NET INCOME		16,773			34,259			51,032

iii. Consolidated Statement of Cash Flows(in thousands)