| Schedule of Changes in Prior Period Statement of Cash Flows Resulting from New Accounting Standard |
As a result of the adoption of ASU No. 2016-18, we adjusted the previously reported condensed consolidated statement of cash flows for the nine months ended October 31, 2017 as follows:
| | | | | | | | | | | | | | | | Nine Months Ended
October 31, 2017 | (in thousands) | | As previously reported | | Adjustments | | As Adjusted | Net cash provided by operating activities | | $ | 96,174 |
| | $ | — |
| | $ | 96,174 |
| Net cash used in investing activities | | (88,693 | ) | | 30,096 |
| | (58,597 | ) | Net cash used in financing activities | | (1,420 | ) | | — |
| | (1,420 | ) | Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents | | (758 | ) | | 1,205 |
| | 447 |
| Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | | 5,303 |
| | 31,301 |
| | 36,604 |
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | | 307,363 |
| | 61,966 |
| | 369,329 |
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | | $ | 312,666 |
| | $ | 93,267 |
| | $ | 405,933 |
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The impact of adoption of ASU No. 2014-09 on our condensed consolidated balance sheet as of October 31, 2018 and on our condensed consolidated statement of operations for the three and nine months ended October 31, 2018 was as follows:
| | | | | | | | | | | | | | | | As of October 31, 2018 | (in thousands) | | As Reported | | Balances without Adoption of ASU No. 2014-09 | | Effect of Change Higher (Lower) | Condensed Consolidated Balance Sheet | | | | | | | Assets: | | | | | | | Accounts receivable, net | | $ | 311,492 |
| | $ | 266,497 |
| | $ | 44,995 |
| Contract assets | | 70,076 |
| | — |
| | 70,076 |
| Deferred cost of revenue | | 9,651 |
| | 11,170 |
| | (1,519 | ) | Prepaid expenses and other current assets | | 85,310 |
| | 86,462 |
| | (1,152 | ) | Long-term deferred cost of revenue | | 4,283 |
| | 1,214 |
| | 3,069 |
| Other assets | | 101,643 |
| | 79,330 |
| | 22,313 |
| | | | | | | | Liabilities: | | | | | | | Accrued expenses and other current liabilities | | 181,452 |
| | 216,637 |
| | (35,185 | ) | Contract liabilities | | 306,240 |
| | 207,199 |
| | 99,041 |
| Long-term contract liabilities | | 27,512 |
| | 26,700 |
| | 812 |
| Other liabilities | | 120,158 |
| | 119,236 |
| | 922 |
| | | | | | | | Stockholders' Equity: | | | | | | | Total stockholders' equity | | 1,213,499 |
| | 1,141,307 |
| | 72,192 |
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While the tables below indicate that calculated revenue for the three and nine months ended October 31, 2018 without the adoption of ASU No. 2014-09 would have been lower than the revenue we are reporting under the new accounting guidance, this lower calculated revenue results not only from the impact of the new accounting guidance, but also from changes we made to our business practices in anticipation and as a result of the new accounting guidance. These business practice changes adversely impact the calculation of revenue under the prior accounting guidance and include, among other things, the way we manage our professional services projects, offer and deploy our solutions, structure certain customer contracts, and make pricing decisions. While the many variables, required assumptions, and other complexities associated with these business practice changes make it impractical to precisely quantify the impact of these changes, we believe that calculated revenue under the prior accounting guidance, but absent these business practice changes, would have been closer to the revenue we are reporting under the new accounting guidance.
| | | | | | | | | | | | | | | | Three Months Ended
October 31, 2018 | (in thousands) | | As Reported | | Balances without Adoption of ASU No. 2014-09 | | Effect of Change Higher (Lower) | Condensed Consolidated Statement of Operations | | | | | | | Revenue: | | | | | | | Product | | $ | 111,670 |
| | $ | 109,224 |
| | $ | 2,446 |
| Service and support | | 192,313 |
| | 192,849 |
| | (536 | ) | | | | | | | | Cost of revenue: | | | | | | | Product | | 33,124 |
| | 30,315 |
| | 2,809 |
| Service and support | | 72,182 |
| | 72,847 |
| | (665 | ) | | | | | | | | Expenses and Other: | | | | | | | Selling, general and administrative | | 99,902 |
| | 102,463 |
| | (2,561 | ) | Provision (benefit) for income taxes | | 5,601 |
| | 5,401 |
| | 200 |
| Net income | | 20,213 |
| | 18,086 |
| | 2,127 |
|
| | | | | | | | | | | | | | | | Nine Months Ended
October 31, 2018 | (in thousands) | | As Reported | | Balances without Adoption of ASU No. 2014-09 | | Effect of Change Higher (Lower) | Condensed Consolidated Statement of Operations | | | | | | | Revenue: | | | | | | | Product | | $ | 327,576 |
| | $ | 300,116 |
| | $ | 27,460 |
| Service and support | | 571,941 |
| | 562,701 |
| | 9,240 |
| | | | | | | | Cost of revenue: | | | | | | | Product | | 100,917 |
| | 94,243 |
| | 6,674 |
| Service and support | | 218,842 |
| | 219,319 |
| | (477 | ) | | | | | | | | Expenses and Other: | | | | | | | Selling, general and administrative | | 311,482 |
| | 319,481 |
| | (7,999 | ) | Provision (benefit) for income taxes | | 2,153 |
| | (1,647 | ) | | 3,800 |
| Net income | | 41,912 |
| | 7,210 |
| | 34,702 |
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