REVENUE

On January 1, 2018, we adopted ASC Topic 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605.

We recorded an increase to opening retained earnings of $798 (net of tax of $276) as of January 1, 2018 due to the cumulative impact of adopting ASC Topic 606, with the impact primarily related to the recognition of bill and hold transactions that were deferred under ASC Topic 605. The impact to revenues for the quarter ended March 31, 2018 was an increase of $311 as a result of applying ASC Topic 606.

In accordance with the new revenue standard requirement, the disclosure impact of adoption on our condensed consolidated statement of income for the three months ended March 31, 2018 and the condensed consolidated balance sheet as of March 31, 2018 was as follows:

Condensed Consolidated Statement of Income



	Three Months Ended March 31, 2018
(Stated in thousands)	As Reported		Balance without Adoption		Effect of Change
Net sales	$	1,637,652	$	1,637,341	$	311
Cost of merchandise sold	1,326,233		1,325,883		350

Condensed Consolidated Balance Sheet



	March 31, 2018
(Stated in thousands)	As Reported		Balance without Adoption		Effect of Change
Merchandise inventory	$	616,819	$	626,629	$	(9,810	)
Other current assets	22,820		23,096		(276		)
Other non-current liabilities	22,052		32,897		(10,845		)
Retained earnings	635,933		635,135		798

The following table summarizes the percentages of our net sales attributable to each of our vertical markets for the three months ended March 31, 2018 and 2017:



	March 31, 2018		March 31, 2017
Construction	58.7	%	58.5	%
Industrial & Utility	22.1		21.7
CIG	19.2		19.8
Total net sales	100.0	%	100.0	%

We had no material contract assets, contract liabilities, or deferred contract costs recorded on the condensed consolidated balance sheet as of March 31, 2018. In addition, for the three months ended March 31, 2018, revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period is not material.

Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material.