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Quarterly Results (unaudited)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results (unaudited)
Quarterly Results (unaudited)

The following table reflects selected quarterly results for the Company.
 
 
Three Months Ended
(in thousands, except per share data)
March 31, 2018
 
June 30,
2018
 
September 30, 2018
 
December 31, 2018
Operating revenue
$
154,138

 
$
156,501

 
$
158,731

 
$
161,484

Operating income (loss)
16,754

 
21,169

 
28,329

 
26,994

Net income (loss)
6,583

 
9,626

 
15,534

 
14,852

 
 
 
 
 
 
 
 
Net income (loss) per share - basic
$
0.13

 
$
0.19

 
$
0.31

 
$
0.31

Net income (loss) per share - diluted
$
0.13

 
$
0.19

 
$
0.31

 
$
0.30

 
 
 
 
 
 
 
 
 
Three Months Ended
(in thousands except per share data)
March 31, 2017
 
June 30,
2017
 
September 30, 2017
 
December 31, 2017
Operating revenue
$
154,125

 
$
153,867

 
$
152,382

 
$
151,617

Operating income (loss)
10,673

 
8,252

 
9,475

 
18,110

Net income (loss)
2,341

 
(80
)
 
3,534

 
60,595

 
 
 
 
 
 
 
 
Net income (loss) per share - basic
$
0.05

 
$
—

 
$
0.07

 
$
1.23

Net income (loss) per share - diluted
$
0.05

 
$
—

 
$
0.07

 
$
1.21



Immaterial Prior Period Adjustment.

During the three months ended September 30, 2018, the Company determined that the unaudited condensed consolidated financial statements for the three months ended March 31, 2018, and the three and six months ended June 30, 2018, contained an immaterial misstatement.  Excess amortization of deferred contract costs that are recognized as a reduction of revenue, as described in Note 3, resulted in an understatement of revenue for the three months ended March 31, 2018, and the three and six months ended June 30, 2018. Additionally, amounts recorded upon the adoption of Topic 606 on January 1, 2018 were misstated. The Company evaluated the materiality of the prior period adjustment quantitatively and qualitatively, under the SEC’s authoritative guidance on materiality, and concluded that the prior period adjustment was not material to the financial statements of any of the impacted unaudited 2018 periods. The Company elected to correct the prior period adjustment by revising the prior period financial statements. 

The cumulative effect of the adjustment made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue recognition standard was as follows:
 
As of January 1, 2018
(in thousands)
As Reported
 
Correction of Error
 
As Adjusted
Prepaid expenses and other
$
53,688

 
$
(6,701
)
 
$
46,987

Deferred charges and other assets, net
29,797

 
14,964

 
44,761

Deferred income taxes
119,030

 
2,201

 
121,231

Retained earnings
347,240

 
6,062

 
353,302


The following table presents the effects of the immaterial prior period adjustment on the unaudited condensed consolidated balance sheet as of March 31, 2018 and June 30, 2018:
 
As of March 31, 2018
(in thousands)
As Reported
 
Correction of Error
 
As Adjusted
Prepaid expenses and other
$
64,200

 
$
(5,741
)
 
$
58,459

Deferred charges and other assets, net
33,934

 
16,410

 
50,344

Deferred income taxes
115,809

 
2,853

 
118,662

Retained earnings
352,069

 
7,816

 
359,885

 
As of June 30, 2018
(in thousands)
As Reported
 
Correction of Error
 
As Adjusted
Prepaid expenses and other
$
64,163

 
$
(4,756
)
 
$
59,407

Deferred charges and other assets, net
34,021

 
17,896

 
51,917

Deferred income taxes
111,125

 
3,522

 
114,647

Retained earnings
359,893

 
9,618

 
369,511



The following tables present the effects of the immaterial prior period adjustment on the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2018 and the three and six months ended June 30, 2018:
 
For the Three Months Ended March 31, 2018
(in thousands)
As Reported
 
Correction of Error
 
As Adjusted
Service revenue and other
$
134,153

 
$
2,406

 
$
136,559

Income tax expense (benefit)
1,176

 
652

 
1,828

Net income (loss)
4,829

 
1,754

 
6,583

Earnings per share - basic
$
0.10

 
$
0.03

 
$
0.13

Earnings per share - diluted
$
0.10

 
$
0.03

 
$
0.13

 
For the Three Months Ended June 30, 2018
(in thousands)
As Reported
 
Correction of Error
 
As Adjusted
Service revenue and other
$
138,021

 
$
2,471

 
$
140,492

Income tax expense (benefit)
2,862

 
669

 
3,531

Net income (loss)
7,824

 
1,802

 
9,626

Earnings per share - basic
$
0.16

 
$
0.03

 
$
0.19

Earnings per share - diluted
$
0.16

 
$
0.03

 
$
0.19

 
For the Six Months Ended June 30, 2018
(in thousands)
As Reported
 
Correction of Error
 
As Adjusted
Service revenue and other
$
272,174

 
$
4,877

 
$
277,051

Income tax expense (benefit)
4,038

 
1,321

 
5,359

Net income (loss)
12,653

 
3,556

 
16,209

Earnings per share - basic
$
0.26

 
$
0.07

 
$
0.33

Earnings per share - diluted
$
0.25

 
$
0.07

 
$
0.32