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Note 3 - Adoption of New Revenue Recognition Standard
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
3.
ADOPTION OF NEW REVENUE RECOGNITION STANDARD
 
The Company adopted ASC
606
on
January 1, 2018
using the full retrospective method, resulting in a recasting of prior period consolidated financial statements. The adoption resulted in the deferral of all business installation revenues and residential and business customer acquisition costs, to be recognized over a period of time, instead of immediately. The impact of the ASC
606
adoption on the comparative
2017
condensed consolidated financial statements was as follows (in thousands, except per share data):
 
   
December 31, 2017
  
   
As Reported
    
ASC 606
Adjustment
    
As Re
casted
  
Condensed Consolidated Balance Sheet Information
  
 
 
 
  
 
 
 
  
 
 
 
Assets
  
 
 
 
  
 
 
 
  
 
 
 
Current Assets:
                        
Accounts receivable, net
   $
51,141
     $
(21,211
 )   $
29,930
  
Prepaid and other current assets
    
8,160
      
2,738
      
10,898
  
Total Current Assets
    
242,384
      
(18,473
 )    
223,911
  
Other noncurrent assets
    
6,179
      
4,776
      
10,955
  
Total Assets
   $
2,218,329
     $
(13,697
 )   $
2,204,632
  
                         
Liabilities and Stockholders' Equity
  
 
 
 
  
 
 
 
  
 
 
 
Current Liabilities:
                        
Accounts payable and accrued liabilities
   $
117,963
     $
(108
 )   $
117,855
  
Deferred revenue
    
38,266
      
(23,258
 )    
15,008
  
Total Current Liabilities
    
170,604
      
(23,366
 )    
147,238
  
Deferred income taxes
    
205,636
      
1,518
      
207,154
  
Other noncurrent liabilities
    
9,991
      
3,120
      
13,111
  
Total Liabilities
    
1,546,913
      
(18,728
 )    
1,528,185
  
                         
Stockholders' Equity
                        
Retained earnings
    
723,354
      
5,032
      
728,386
  
Total Stockholders' Equity
    
671,416
      
5,031
      
676,447
  
Total Liabilities and Stockholders' Equity
   $
2,218,329
     $
(13,697
 )   $
2,204,632
  
 
   
Three Months Ended
June 30, 2017
  
   
As
Reported
/
Re
vised
(1)
    
ASC 606
Adjustment
    
As
Re
casted
  
Condensed Consolidated Statement of Operations and Comprehensive Income Information
  
Revenues
   $
241,042
     $
(51
 )   $
240,991
  
Costs and expenses
                        
Operating (excluding depreciation and amortization)
    
83,849
      
199
      
84,048
  
Selling, general and administrative
    
51,194
      
(229
 )    
50,965
  
Total costs and expenses
    
183,527
      
(30
 )    
183,497
  
Income from operations
    
57,515
      
(21
 )    
57,494
  
Income before income taxes
    
45,411
      
(21
 )    
45,390
  
Income tax provision
    
17,537
      
(7
 )    
17,530
  
Net income
   $
27,874
     $
(14
 )   $
27,860
  
                         
Net income per common share:
                        
Basic
   $
4.91
     $
-
     $
4.91
  
Diluted
   $
4.85
     $
-
     $
4.85
  
                         
Comprehensive income
   $
27,876
     $
(14
 )   $
27,862
  
_________
(
1
)
Refer to note
2
for details regarding the revision. 
 
   
Six Months Ended June 30, 2017
  
   
As
Reported/
Re
vised
(1)
    
ASC 606
Adjustment
    
As
Re
casted
  
Condensed Consolidated Statement of Operations and Comprehensive Income Information
  
Revenues
   $
448,469
     $
(44
 )   $
448,425
  
Costs and expenses
                        
Operating (excluding depreciation and amortization)
    
152,932
      
199
      
153,131
  
Selling, general and administrative
    
97,450
      
(101
 )    
97,349
  
Total costs and expenses
    
332,255
      
97
      
332,352
  
Income from operations
    
116,214
      
(141
 )    
116,073
  
Income before income taxes
    
96,790
      
(141
 )    
96,649
  
Income tax provision
    
36,728
      
(54
 )    
36,674
  
Net income
   $
60,062
     $
(87
 )   $
59,975
  
                         
Net income per common share:
                        
Basic
   $
10.58
     $
(0.02
 )   $
10.56
  
Diluted
   $
10.46
     $
(0.01
 )   $
10.45
  
                         
Comprehensive income
   $
60,066
     $
(87
 )   $
59,979
  
                         
Condensed Consolidated Statement of
Cash Flows Information
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
60,062
     $
(87
 )   $
59,975
  
Change in deferred income taxes
    
6,773
      
(54
 )    
6,719
  
Change in deferred revenue
    
89
      
92
      
181
  
Change in other noncurrent assets and liabilities, net
    
462
      
50
      
512
  
Net cash provided by operating activities
   $
130,859
     $
-
     $
130,859
  
_________
(
1
)
Refer to note
2
for details regarding the revision. 
 
The adoption of ASC
606
did
not
result in any changes to previously reported total net cash flows from operating, financing or investing activities.
 
A summary of changes in timing and presentation to the Company’s historical consolidated financial statements is presented below:
 
●
The net decrease in total assets reflects a decrease in accounts receivable to remove amounts billed to customers for which the associated performance obligations have
not
yet been satisfied, partially offset by the deferral of incremental costs incurred to obtain customers, which were historically expensed immediately.
 
●
The net decrease in total liabilities reflects a decrease in deferred revenue to remove amounts billed to customers for which the associated performance obligations have
not
yet been satisfied, partially offset by the recognition of deferred revenue related to certain up-front and installation fees collected from business customers, which were historically recognized when billed and the net tax effect of establishing additional deferred assets and liabilities.
 
●
The changes in revenues and expenses are a result of the deferred recognition of incremental customer acquisition costs and up-front and installation business services fees over a period of time, compared to the historical treatment of immediate recognition.