Impacts on Financial Statements

The following tables summarize the impacts of ASC 606 adoption on the Company’s Consolidated Financial Statements:

Consolidated Balance Sheet as of June 30, 2018:



	As Previously Reported (Adjusted)*			Adjustments			As Adjusted
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	31,440		$	—		$	31,440
Receivables, net	291,630			5,641			297,271
Income tax receivable	21,671			—			21,671
Prepaid expenses and other*	84,738			11,331			96,069
Deferred costs*	34,907			(11,916		)	22,991
Assets held for sale*	1,300			—			1,300
Total current assets	465,686			5,056			470,742
PROPERTY AND EQUIPMENT, net*	285,550			—			285,550
OTHER ASSETS:
Non-current deferred costs	95,540			(20,675		)	74,865
Computer software, net of amortization	288,172			—			288,172
Other non-current assets	107,775			2,524			110,299
Customer relationships, net of amortization	115,034			—			115,034
Other intangible assets, net of amortization	38,467			—			38,467
Goodwill	649,929			—			649,929
Total other assets	1,294,917			(18,151		)	1,276,766
Total assets	$	2,046,153		$	(13,095	)	$	2,033,058
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable*	$	30,360		$	—		$	30,360
Accrued expenses	97,848			(9,084		)	88,764
Deferred revenues	355,538			(26,607		)	328,931
Total current liabilities	483,746			(35,691		)	448,055
LONG-TERM LIABILITIES:
Non-current deferred revenues	93,094			(52,110		)	40,984
Non-current deferred income tax liability	189,613			18,690			208,303
Other long-term liabilities	12,872			—			12,872
Total long-term liabilities	295,579			(33,420		)	262,159
Total liabilities	779,325			(69,111		)	710,214
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	—			—			—
Common stock - $0.01 par value; 250,000,000 shares authorized; 103,278,562 shares issued at June 30, 2018	1,033			—			1,033
Additional paid-in capital	464,138			—			464,138
Retained earnings	1,856,917			56,016			1,912,933
Less treasury stock at cost 26,107,903 shares at June 30, 2018	(1,055,260		)	—			(1,055,260		)
Total stockholders' equity	1,266,828			56,016			1,322,844
Total liabilities and equity	$	2,046,153		$	(13,095	)	$	2,033,058

*Adjusted for reclassifications and corrections not related to ASC 606 adoption. See comments under "Prior Period Reclassification" and "Prior Period Misclassification" headings in this Note 1 to the Consolidated Financial Statements.

Consolidated Statements of Income for the fiscal years ended ended June 30, 2018 and June 30, 2017:



	Year Ended June 30, 2018									Year Ended June 30, 2017
	As Previously Reported			Adjustments			As Adjusted			As Previously Reported			Adjustments			As Adjusted
REVENUE	$	1,536,603		$	(65,806	)	$	1,470,797		$	1,431,117		$	(42,827	)	$	1,388,290

EXPENSES
Cost of Revenue	873,642			(20,504		)	853,138			819,034			(13,179		)	805,855
Research and Development	90,340			—			90,340			84,753			—			84,753
Selling, General, and Administrative	182,146			(10,436		)	171,710			162,898			(3,663		)	159,235
Gain on Disposal of a Business	(1,894		)	—			(1,894		)	(3,270		)	—			(3,270		)
Total Expenses	1,144,234			(30,940		)	1,113,294			1,063,415			(16,842		)	1,046,573

OPERATING INCOME	392,369			(34,866		)	357,503			367,702			(25,985		)	341,717

INTEREST INCOME (EXPENSE)
Interest Income	575			—			575			248			—			248
Interest Expense	(1,920		)	—			(1,920		)	(996		)	—			(996		)
Total Interest Income (Expense)	(1,345		)	—			(1,345		)	(748		)	—			(748		)

INCOME BEFORE INCOME TAXES	391,024			(34,866		)	356,158			366,954			(25,985		)	340,969

PROVISION/ (BENEFIT) FOR INCOME TAXES	14,364			(23,240		)	(8,876		)	121,161			(9,753		)	111,408

NET INCOME	$	376,660		$	(11,626	)	$	365,034		$	245,793		$	(16,232	)	$	229,561

Basic earnings per share	$	4.88					$	4.73		$	3.16					$	2.95
Basic weighted average shares outstanding	77,252						77,252			77,856						77,856

Diluted earnings per share	$	4.85					$	4.70		$	3.14					$	2.93
Diluted weighted average shares outstanding	77,585						77,585			78,255						78,255

Consolidated Statement of Cash Flows for the fiscal years ended June 30, 2018 and June 30, 2017:



	Year Ended June 30, 2018									Year Ended June 30, 2017
	As Previously Reported*			Adjustments			As Adjusted			As Previously Reported			Adjustments			As Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	376,660		$	(11,626	)	$	365,034		$	245,793		$	(16,232	)	$	229,561
Adjustments to reconcile net income from operations to net cash from operating activities:
Depreciation	47,975			—			47,975			49,677			—			49,677
Amortization	104,011			—			104,011			90,109			—			90,109
Change in deferred income taxes	(51,644		)	(23,240		)	(74,884		)	30,940			(9,753		)	21,187
Expense for stock-based compensation	11,758			—			11,758			11,129			—			11,129
(Gain)/loss on disposal of assets and businesses	(954		)	—			(954		)	4,771			—			4,771
Changes in operating assets and liabilities:
Change in receivables	(9,219		)	30,708			21,489			(22,499		)	(10,597		)	(33,096		)
Change in prepaid expenses, deferred costs and other*	(24,304		)	(58,359		)	(82,663		)	(25,088		)	96			(24,992		)
Change in accounts payable*	6,922			—			6,922			(7,812		)	—			(7,812		)
Change in accrued expenses	9,091			(2,000		)	7,091			(4,454		)	(7,512		)	(11,966		)
Change in income taxes	5,108			—			5,108			(6,444		)	—			(6,444		)
Change in deferred revenues	(63,262		)	64,517			1,255			(8,800		)	43,998			35,198
Net cash from operating activities	412,142			—			412,142			357,322			—			357,322

CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(137,562		)	—			(137,562		)	—			—			—
Capital expenditures	(40,135		)	—			(40,135		)	(41,947		)	—			(41,947		)
Proceeds from the sale of businesses	350			—			350			5,632			—			5,632
Proceeds from the sale of assets	306			—			306			968			—			968
Purchased software	(13,138		)	—			(13,138		)	(16,608		)	—			(16,608		)
Computer software developed	(96,647		)	—			(96,647		)	(89,631		)	—			(89,631		)
Purchase of investments	(5,000		)	—			(5,000		)	—			—			—
Net cash from investing activities	(291,826		)	—			(291,826		)	(141,586		)	—			(141,586		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	125,000			—			125,000			80,000			—			80,000
Repayments on credit facilities	(175,000		)	—			(175,000		)	(30,200		)	—			(30,200		)
Purchase of treasury stock	(48,986		)	—			(48,986		)	(130,140		)	—			(130,140		)
Dividends paid	(105,021		)	—			(105,021		)	(91,707		)	—			(91,707		)
Proceeds from issuance of common stock upon exercise of stock options	176			—			176			1			—			1
Tax withholding payments related to share based compensation	(7,333		)	—			(7,333		)	(5,480		)	—			(5,480		)
Proceeds from sale of common stock	7,523			—			7,523			6,245			—			6,245
Net cash from financing activities	(203,641		)	—			(203,641		)	(171,281		)	—			(171,281		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	(83,325	)	$	—		$	(83,325	)	$	44,455		$	—		$	44,455
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	114,765		$	—		$	114,765		$	70,310		$	—		$	70,310
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	31,440		$	—		$	31,440		$	114,765		$	—		$	114,765
*Adjusted for reclassifications and corrections not related to ASC 606 adoption. See comments under "Prior Period Reclassification" and "Prior Period Misclassification" headings in this Note 1 to the Consolidated Financial Statements.