In the FASB issued ASU - Revenue from Contracts with Customers. The standard provides revenue recognition guidance for any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other accounting standards. The core principle of ASC is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

 

On the Company adopted ASC using the modified retrospective method for all contracts. Results for reporting periods beginning are presented under ASC while prior period amounts were adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic .

 

The Company recorded a net increase to beginning retained earnings of  as of due to the cumulative impact of adopting ASC The impact to beginning retained earnings was primarily driven by the transition to over-time revenue recognition on custom development projects, partially offset by the deferral of revenue for unfulfilled performance obligations. The adoption of ASC did have a material impact on the Company’s consolidated financial statements as of and for the quarter and month period ended and, as a result, comparisons of revenues and operating profit performance between periods are affected by the adoption of this ASU. Refer to Note for additional disclosures required by ASC

 

In the FASB issued ASU - . The standard is intended to improve the recognition, measurement, presentation and disclosure of financial instruments. Among other changes, there will longer be an available-for-sale classification for which changes in fair value are currently reported in other comprehensive income for equity securities with readily determinable fair values. Equity investments with readily determinable fair values will be measured at fair value with changes in fair value recognized in net income. ASU - was effective for us on which required a cumulative effect adj for the quarter and  month period ended as a result of adopting this standard. The implementation of ASU - is expected to increase volatility in our net income as the volatility previously recorded in Other Comprehensive Income (OCI) related to changes in the fair market value of available-for-sale equity investments will now be reflected in net income effective with the adoption date.

 

In the FASB issued ASU - . The standard allows companies to make an election to reclassify from Accumulated Other Comprehensive Income (AOCI) to retainedearnings the stranded tax effects resulting from the Tax Cuts and Jobs Act of This ASU is effective for annual and interim periodsbeginning after which for us is Early adoption is permitted. We elected to early adopt ASU - on We use a specific identification approach to release the income tax effects in AOCI. As a result of adopting this standard, we recorded a cumulative effect adjustment to increase AOCI by  million with a corresponding decrease to retained earnings. We recorded the impacts of adopting ASU - prior to recording the impacts of adopting ASU - and included state income tax related effects in the amounts reclassified to retained earnings.

The following table presents a summary of cumulative effect adjustments to retained earnings due to the adoption of new accounting standards on as noted above:

 

		Cumulative Effect Adjustments to Retained Earnings on July 1, 2018 Increase / (Decrease)
Cumulative effect adjustment to retained earnings due to the adoption of the following new accounting standards:
ASU 2014-09		$	98
ASU 2016-01			27,053
ASU 2018-02			(2,371	)
Net cumulative effect adjustments to retained earnings on July 1, 2018 due to the adoption of new accounting standards		$	24,780

In the FASB issued ASU - . The standard revises the definition of a business, which affects many areas of accounting such as business combinations and disposals and goodwill impairment. The revised definition of a business will likely result in more acquisitions being accounted for as asset acquisitions, as opposed to business combinations. We adopted this standard on applying the guidance to transactions occurring on or after this date.

 

In the FASB issued ASU. The standard changes the designation and measurement guidance for qualifying hedging relationships to better align financial reporting to risk management activities.  As part of the guidance, the entire change in fair value of a qualifying hedging instrument will be recorded within other comprehensive income which is then reclassified into earnings in the same period or periods during which the hedged item impacts earnings. Additionally, the gain or loss resulting from the hedging activity will be presented in the same income statement line item as the hedged item. The standard is effective for interim and annual reporting periods in fiscal years beginning after which for us is Early adoption is permitted. We elected to early adopt ASU - on prior to the Company entering into cash flow hedges as described in Note The adoption of this standard did have a material impact on our consolidated financial statements.

 

In the FASB issued ASU - ), which amends the existing guidance to require lessees to recognize lease assets and lease liabilities from operating leases on the balance sheet. This ASU is effective using the modified retrospective approach for annual periods and interim periods within those annual periods beginning after which for us is Early adoption is permitted. In the FASB issued ASU - , which amends narrow aspects of the guidance in ASU - We have established an implementation team to evaluate and identify the impact of the standard on our financial position, results of operations and cash flows. We are currently assessing our leasing arrangements and evaluating the impact of practical expedients. We are able to quantify the impact of the standard at this time.

 

In the FASB issued ASU - . The amendment in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade and loan receivables and available-for-sale debt securities. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. This ASU is effective for annual periods and interim periods for those annual periods beginning after which for us is Entities early adopt beginning after We are currently evaluating the impact of the adoption of ASU - on our consolidated financial statements.

 

In the FASB issued ASU - . The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is affected by the new standard.  This ASU is effective for annual periods and interim periods for those annual periods beginning after which for us is and be adopted retrospectively or prospectively to eligible costs incurred on or after the date the guidance is applied. We are currently evaluating the impact of the adoption of ASU - on our consolidated financial statements and anticipate that we will adopt the standard prospectively.