Quarterly Financial Results (unaudited)

12 Months Ended

Dec. 31, 2022

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

Revision of Previously Issued Financial Statements

During the preparation of the financial statements for the year ended December 31, 2022, an error was identified in the Company’s accounting for an intercompany sale of intellectual property that occurred during 2022. During each of the first three quarters of 2022, the Company failed to record a deferred tax asset in the jurisdiction where the intellectual property was sold for the step up in tax basis that was achieved with the sale. This caused net deferred taxes to be understated in the interim condensed consolidated balance sheets, the provision for income taxes to be overstated and net income and earnings per share to be understated in the interim condensed consolidated statements of income. Management evaluated the error and determined that the related impact was not material to any of the Company's previously issued financial statements.

The financial data below has been derived from the Company’s quarterly reports on Form 10-Q filed for the respective periods, with 2022 periods adjusted to reflect the impact of the error. The Company will also correct previously reported financial information for this error in its future filings, as applicable.


(in thousands, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Year ended December 31, 2022
Revenue	$	903,647	$	903,332	$	881,896	$	927,779
Cost of revenue (exclusive of amortization of acquired intangible assets)	332,752		346,649		346,450		357,968
Net income	133,376		137,840		123,694		128,762
Basic net income per share	0.83		0.86		0.78		0.82
Diluted net income per share	0.82		0.85		0.78		0.82
Year ended December 31, 2021
Revenue	$	842,708	$	852,824	$	860,333	$	905,358
Cost of revenue (exclusive of amortization of acquired intangible assets)	306,687		320,000		316,866		325,403
Net income	155,695		156,497		178,916		160,534
Basic net income per share	0.95		0.96		1.10		0.99
Diluted net income per share	0.94		0.94		1.08		0.97

The changes to the condensed consolidated balance sheets as a result of the error were as follows (in thousands):


	As Previously Reported		Adjustment		As Revised
March 31, 2022
Deferred income tax assets	$	265,946	$	8,610	$	274,556
Total assets	8,303,779		8,610		8,312,389
Deferred income tax liabilities	41,131		(5,603)		35,528
Total liabilities	4,003,257		(5,603)		3,997,654
Retained earnings	1,515,842		14,213		1,530,055
Total stockholders’ equity	4,300,522		14,213		4,314,735
Total liabilities and stockholders’ equity	8,303,779		8,610		8,312,389

June 30, 2022
Deferred income tax assets	$	292,817	$	19,698	$	312,515
Total assets	8,211,054		19,698		8,230,752
Deferred income tax liabilities	39,367		(12,818)		26,549
Total liabilities	3,930,576		(12,818)		3,917,758
Retained earnings	1,635,379		32,516		1,667,895
Total stockholders’ equity	4,280,478		32,516		4,312,994
Total liabilities and stockholders’ equity	8,211,054		19,698		8,230,752

September 30, 2022
Deferred income tax assets	$	285,722	$	29,112	$	314,834
Total assets	8,107,369		29,112		8,136,481
Deferred income tax liabilities	38,146		(18,944)		19,202
Total liabilities	3,874,185		(18,944)		3,855,241
Retained earnings	1,743,533		48,056		1,791,589
Total stockholders’ equity	4,233,184		48,056		4,281,240
Total liabilities and stockholders’ equity	8,107,369		29,112		8,136,481

Changes to the condensed consolidated statements of income as a result of the error were as follows (in thousands, except per share data):


	For the Three Months Ended March 31, 2022
	As Previously Reported		Adjustment		As Revised
Provision for income taxes	$	(34,050)	$	14,213	$	(19,837)
Net income	119,163		14,213		133,376
Net income per share:
Basic	$	0.74	$	0.09	$	0.83
Diluted	$	0.73	$	0.09	$	0.82


	For the Three Months Ended June 30, 2022						For the Six Months Ended June 30, 2022
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Provision for income taxes	$	(51,058)	$	18,303	$	(32,755)	$	(85,108)	$	32,516	$	(52,592)
Net income	119,537		18,303		137,840		238,700		32,516		271,216
Net income per share:
Basic	$	0.75	$	0.11	$	0.86	$	1.49	$	0.20	$	1.69
Diluted	$	0.74	$	0.11	$	0.85	$	1.47	$	0.20	$	1.67


	For the Three Months Ended September 30, 2022						For the Nine Months Ended September 30, 2022
	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised
Provision for income taxes	$	(50,006)	$	15,540	$	(34,466)	$	(135,114)	$	48,056	$	(87,058)
Net income	108,154		15,540		123,694		346,854		48,056		394,910
Net income per share:
Basic	$	0.68	$	0.10	$	0.78	$	2.17	$	0.30	$	2.47
Diluted	$	0.68	$	0.10	$	0.78	$	2.15	$	0.30	$	2.45

The condensed consolidated statements of shareholders' equity, condensed consolidated statements of cash flows and condensed consolidated statements of comprehensive income for the quarterly and year-to-date periods ended March 31, 2022, June 30, 2022 and September 30, 2022 were also revised to reflect the impact to net income as stated in the tables above. The benefit for deferred income tax line was also adjusted in the condensed consolidated statement of cash flows, however, the error had no net impact on cash flows from operating, investing or financing activities in these periods.