Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A complete listing of the Company’s significant accounting policies is discussed in Note 2, Summary of Significant Accounting Policies , in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Revenue Recognition As a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, the Company's accounting policy for revenue recognition has been updated. See Note 3 , Revenue. Restricted Cash The Company has lease agreements and business licenses with terms that require the Company to restrict cash through the termination dates of the agreements. Current and non-current restricted cash is included in Other current assets and Other non-current assets , respectively, in the Condensed Consolidated Balance Sheets. The following table provides a reconciliation of the cash and cash equivalents between the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statement of Cash Flows as of March 31, 2018 and 2017 , and December 31, 2017 and 2016 : March 31, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 73,358 $ 68,329 $ 207,534 $ 165,011 Restricted cash included within other current assets 533 147 526 139 Restricted cash included within other non-current assets 104 430 102 419 Total cash, cash equivalents and restricted cash $ 73,995 $ 68,906 $ 208,162 $ 165,569 Reclassifications Certain prior year amounts have been recast as a result of the change in the Company's operating segments and adoption of ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The reclassifications had no impact on net income, net cash flows or stockholders' equity. Earnings per Common Share Basic earnings per common share is computed by dividing net income by weighted average common shares outstanding for the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Common equivalent shares are excluded from the determination of diluted earnings per share in periods in which they have an anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended 2018 2017 Net income $ 10,168 $ 650 Weighted average shares outstanding: Basic 18,826 18,628 Effect of dilutive securities: Restricted stock units 346 431 Performance stock units 149 160 Diluted 19,321 19,219 Basic earnings per share $ 0.54 $ 0.03 Diluted earnings per share $ 0.53 $ 0.03 Recently Issued Financial Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Income Statement - Reporting Comprehensive Income, intended to improve the usefulness of information reported as a result of the Tax Cuts and Jobs Act. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. In February 2016, the FASB issued ASU No. 2016-02, Leases, intended to improve financial reporting about leasing transactions. The new guidance will require entities that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations created by those leases and to disclose key information about the leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The guidance requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of this accounting guidance. The effect is not known or reasonably estimable at this time. Recently Adopted Financial Accounting Standards On January 1, 2018, the Company adopted ASU No. 2017-09, Compensation - Stock Compensation, Scope of Modification Accounting, which is intended to provide clarity and reduce both diversity in practice, cost and complexity when implementing a change in the terms or conditions of a share-based payment award. ASU 2017-09 requires that an entity should account for the effects of a modification unless the fair value, vesting conditions, and whether the award is classified as a liability instrument or an equity instrument remain unchanged in the modification. The adoption of this guidance did not have an impact on the Company's financial statements. The future impact of this accounting guidance will be dependent on future modification events including the number of awards modified. On January 1, 2018, the Company adopted ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, which is intended to improve the consistency, transparency and usefulness of net benefit cost disclosures. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net benefit costs are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The adoption of this guidance did not have an impact on the Company's financial statements. On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance increased the Company's beginning and ending balances of cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows by approximately $0.6 million for each period presented. Changes in the Company's restricted cash balances between periods are immaterial. On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice as to how certain cash receipts and cash payments should be presented and classified. The adoption of this guidance did not have an impact on the Company's financial statements. On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments including the recognition of unrealized changes in fair value within net income. The adoption of this guidance resulted in a reclassification of accumulated unrealized gains of approximately $6.1 million from accumulated other comprehensive income to retained earnings. The impact of the adoption of this guidance on the Company's Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2018, was not material. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The Company applied the guidance to all contracts that were not complete as of the adoption date. The guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these goods or services. The Company recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Impacts on Financial Statements of Recently Adopted Financial Accounting Standards The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers, and ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities were as follows: December 31, ASU 2014-09 Adjustments ASU 2016-01 Adjustments January 1, Current assets Other current assets $ 11,620 $ 14,689 $ — $ 26,309 Total current assets 343,790 14,689 — 358,479 Non-current assets Deferred income taxes 35,402 (3,099 ) — 32,303 Total non-current assets 243,414 (3,099 ) — 240,315 Total assets $ 587,204 $ 11,590 $ — $ 598,794 Current liabilities Deferred revenue $ 31,272 $ (1,059 ) $ — $ 30,213 Other current liabilities 40,346 3,695 — 44,041 Total current liabilities 265,792 2,636 — 268,428 Total liabilities 374,499 2,636 — 377,135 Stockholders' equity Retained earnings (deficit) (716 ) 8,954 6,089 14,327 Accumulated other comprehensive income 13,315 — (6,089 ) 7,226 Total stockholders’ equity 212,705 8,954 — 221,659 Total liabilities and stockholders’ equity $ 587,204 $ 11,590 $ — $ 598,794 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Balance Sheet as of March 31, 2018 was as follows: March 31, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Current assets Other current assets $ 28,104 $ 12,523 $ 15,581 Total current assets 268,646 253,065 15,581 Non-current assets Deferred income taxes 32,691 35,790 (3,099 ) Total non-current assets 255,700 258,799 (3,099 ) Total assets $ 524,346 $ 511,864 $ 12,482 Current liabilities Accrued salaries and employee benefits $ 83,414 $ 81,690 $ 1,724 Deferred revenue 39,598 42,242 (2,644 ) Other current liabilities 39,499 35,804 3,695 Income taxes payable 8,300 8,072 228 Total current liabilities 180,385 177,382 3,003 Total liabilities 293,857 290,854 3,003 Stockholders' equity Retained earnings (deficit) 22,024 12,545 9,479 Total stockholders’ equity 230,489 221,010 9,479 Total liabilities and stockholders’ equity $ 524,346 $ 511,864 $ 12,482 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2018 was as follows: Three Months Ended March 31, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Revenue Revenue before reimbursements (net revenue) $ 160,071 $ 157,594 $ 2,477 Reimbursements 4,587 4,587 — Total revenue 164,658 162,181 2,477 Operating expenses Salaries and employee benefits 111,409 109,685 1,724 General and administrative expenses 35,541 35,541 — Reimbursed expenses 4,587 4,587 — Total operating expenses 151,537 149,813 1,724 Operating income 13,121 12,368 753 Non-operating income (expense) Interest, net 239 239 — Other, net (448 ) (448 ) — Net non-operating income (expense) (209 ) (209 ) — Income before income taxes 12,912 12,159 753 Provision for income taxes 2,744 2,516 228 Net income $ 10,168 $ 9,643 $ 525 Basic earnings per share $ 0.54 $ 0.51 $ 0.03 Diluted earnings per share $ 0.53 $ 0.50 $ 0.03 The impact of ASU 2014-09, Revenue from Contracts with Customers, on our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2018 was as follows: Three Months Ended March 31, 2018 As Reported Balances Without Adoption of ASU 2014-09 Effect of Adoption Higher/(Lower) Cash flows - operating activities Net income $ 10,168 $ 9,643 $ 525 Changes in assets and liabilities, net of effects of acquisitions: Accrued expenses (105,644 ) (111,063 ) 5,419 Deferred revenue (1,772 ) 2,869 (4,641 ) Income taxes payable, net 503 275 228 Other assets and liabilities, net (2,276 ) (745 ) (1,531 ) |