Schedule of Cumulative Effect of Adopting ASC 606 |
The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet resulting from the adoption of ASC 606 was as follows (in thousands): | | | | | | | | | | | | | | | | Balance at December 31, 2017 | | Adjustments due to ASC 606 | | Balance at January 1, 2018 | Assets | | | | | | | Real estate inventories | | $ | 3,105,553 |
| | $ | (49,317 | ) | | $ | 3,056,236 |
| Deferred income tax asset | | 76,413 |
| | 2,429 |
| | 78,842 |
| Other assets | | 48,070 |
| | 39,534 |
| | 87,604 |
| Equity | | | | | | | Retained earnings | | 1,134,230 |
| | (7,354 | ) | | 1,126,876 |
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Impact of Adopting ASC 606 on Consolidated Income Statement and Balance Sheet |
In accordance with ASC 606 disclosure requirements, the impact of adopting ASC 606 on our consolidated statements of operations and balance sheets for the three and nine months ended September 30, 2018 were as follows (in thousands, except per share amounts): | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2018 | | Nine Months Ended September 30, 2018 | | As Reported | | Balances Without Adoption of ASC 606 | | Effect of Change Higher/(Lower) | | As Reported | | Balances Without Adoption of ASC 606 | | Effect of Change Higher/(Lower) | Statements of Operations | | | | | | | | | | | | Revenues | | | | | | | | | | | | Home sales | $ | 771,768 |
| | $ | 771,784 |
| | $ | (16 | ) | | $ | 2,123,135 |
| | $ | 2,123,387 |
| | $ | (252 | ) | | | | | | | | | | | | | Costs and expenses | | | | | | | | | | | | Cost of home sales | 607,053 |
| | 617,483 |
| | (10,430 | ) | | 1,661,651 |
| | 1,689,324 |
| | (27,673 | ) | Sales and marketing | 44,854 |
| | 38,506 |
| | 6,348 |
| | 128,881 |
| | 109,346 |
| | 19,535 |
| Provision for income taxes | (19,661 | ) | | (18,683 | ) | | 978 |
| | (55,457 | ) | | (53,518 | ) | | 1,939 |
| Net income | 63,969 |
| | 60,881 |
| | 3,088 |
| | 170,529 |
| | 164,582 |
| | 5,947 |
| Diluted earnings per share | $ | 0.43 |
| | $ | 0.41 |
| | $ | 0.02 |
| | $ | 1.13 |
| | $ | 1.09 |
| | $ | 0.04 |
| | | | | | | | | | | | | | As of September 30, 2018 | | | | | | | | As Reported | | Balances Without Adoption of ASC 606 | | Effect of Change Higher/(Lower) | | | | | | | Balance Sheet | | | | | | | | | | | | Assets | | | | | | | | | | | | Real estate inventories | $ | 3,377,735 |
| | $ | 3,424,468 |
| | $ | (46,733 | ) | | | | | | | Deferred tax assets, net | 59,113 |
| | 54,750 |
| | 4,363 |
| | | | | | | Other assets | 107,309 |
| | 63,874 |
| | 43,435 |
| | | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | Accrued expenses and other liabilities | 313,194 |
| | 313,442 |
| | (248 | ) | | | | | | | | | | | | | | | | | | | Equity | | | | | | | | | | | | Retained earnings | 1,297,405 |
| | 1,296,092 |
| | 1,313 |
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