RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Tables)

12 Months Ended

Jun. 30, 2019

ASU 2014-09

Summary of Impact of Adoption of ASC 606 on Financial Statements

The impact of adoption on our consolidated balance sheet is as follows (in thousands):

	June 30, 2018 As Reported Under ASC 605		Adjustments Due to ASC 606		July 1, 2018 Balance Under ASC 606
Assets:
Accounts receivable, net	$	806,871	$	20,454	$	827,325
Prepaid expenses and other current assets		58,126		2,342		60,468
Other long-term assets		39,175		3,923		43,098
Liabilities and Shareholders' Equity:
Other accrued expenses and current liabilities		150,602		2,212		152,814
Deferred income taxes		200,880		6,639		207,519
Other long-term liabilities		85,187		98		85,285
Retained earnings		2,126,790		17,770		2,144,560

The table below presents the impact of adoption of ASC 606 on our consolidated statement of operations for the year ended June 30, 2019 (in thousands):

	Year Ended June 30, 2019
	As Adjusted Under ASC 605		Effect of ASC 606			As Reported Under ASC 606
Revenue	$	4,975,846	$	10,495		$	4,986,341
Costs of revenue:
Direct costs		3,304,053		—			3,304,053
Indirect costs and selling expenses		1,220,317		(1,773	)		1,218,544
Depreciation and amortization		85,877		—			85,877
Total costs of revenue		4,610,247		(1,773	)		4,608,474
Income from operations		365,599		12,268			377,867
Interest expense and other, net		49,958		—			49,958
Income before taxes	$	315,641	$	12,268		$	327,909
Income tax expense		59,179		3,126			62,305
Net income	$	256,462	$	9,142		$	265,604
Basic earnings per share	$	10.33	$	0.37		$	10.70
Diluted earnings per share	$	10.10	$	0.36		$	10.46

For the year ended June 30, 2019, the effect of ASC 606 was primarily related to the timing of award and incentive fee revenue recognition.

The table below presents the impact of adoption of ASC 606 on our consolidated balance sheet as of June 30, 2019 (in thousands):

	As Adjusted Under ASC 605		Effect of ASC 606		As Reported Under ASC 606
Assets:
Accounts receivable, net	$	841,781	$	28,059	$	869,840
Prepaid expenses and other current assets		86,967		2,685		89,652
Other long-term assets		27,983		5,353		33,336
Liabilities and Shareholders' Equity:
Other accrued expenses and current liabilities		231,822		3,789		235,611
Deferred income taxes		199,943		5,396		205,339
Other long-term liabilities		107,932		—		107,932
Retained earnings		2,383,252		26,912		2,410,164